Introduction of reactive groups such as -NH2, -COOH etc onto poly(ε-caprolactone) (PCL) backbone was necessary for further modification but remained as a challenge of synthetic chemistry with a well-controlled approach. Carboxyl functionalized PCL was typically prepared via three steps involving synthesis of the corresponding monomer with a carboxyl-protecting group, polymerization and removal of the protection. Except for obtaining purified monomers and a decent polymerization, the most critical step in carboxyl PCL synthesis was deprotection from a degradable main chain. Therefore, electronic effect and steric hindrance of the protecting group were taken into account with the aim for controllable polymerization and feasible deprotection. Substituents including -CH3, H and NO2 with discriminative electronegativity on the para position of the benzyl protecting group have been selected to investigate their behavior in monomer preparation, polymerization and deprotection, respectively. It turned out that electron donating group (-CH3) displayed highest selectivity in monomer preparation, excellent control over polymerization degree and most efficient removal of protecting groups without the degradation of the backbone. In addition, the reactivity of pendant carboxyl groups on PCL was demonstrated by amidation with 4-amino-2,2,6,6-tetramethylpiperidinyloxy (4-amino-TEMPO). Our results also provide guidance information on preparing well-defined biodegradable polymers with pendant reactive groups such as polypeptides, expanding the library of novel biomaterials.