A series of phosphorus-containing copolyesters was prepared by polycondensation of 2-(6-oxido-6H-dibenz<1,2>oxaphosphorin-6-yl)-1,4-naphthalene diol, 1, or of an equimolecular amount of 1 and different bisphenols 2, such as 4,4 0 -isopropylidenediphenol, 4,4 0 -(hexafluoroisopropylidene)diphenol and 2,7-dihydroxynaphthalene, with an aromatic diacid chloride containing two preformed ester groups 3, namely, terephthaloyl-bis-(4-oxybenzoyl-chloride). The copolyesters exhibited good thermal stability having the temperature of 5% weight loss above 3808C and char yield at 7008C in the range of 20-31.2%. The glass transition temperature was in the range of 136-1478C. The polymers exhibited thermotropic liquid crystalline behavior, as was observed with polarized optical microscopy, differential scanning calorimetry, and X-ray experiments.