Starting with 3,3′,4,4′‐biphenyltetracarboxylic dianhydride and methyl aminobenzoate, we synthesized a novel rodlike imide‐containing monomer, N,N′‐bis[p‐(methoxy carbonyl) phenyl]‐biphenyl‐3,3′,4,4′‐tetracarboxydiimide (BMBI). The polycondensation of BMBI with dimethyl terephthalate and ethylene glycol yielded a series of copoly(ester imide)s based on the BMBI‐modified poly(ethylene terephthalate) (PET) backbone. Compared with PET, these BMBI‐modified polyesters had higher glass‐transition temperatures and higher stiffness and strength. In particular, the poly(ethylene terephthalate imide) PETI‐5, which contained 5 mol % of the imide moieties, had a glass‐transition temperature of 89.9 °C (11 °C higher than the glass‐transition temperature of PET), a tensile modulus of 869.4 MPa (20.2 % higher than that of PET), and a tensile strength of 80.8 MPa (38.8 % higher than that of PET). Therefore, a significant reinforcing effect was observed in these imide‐modified polyesters, and a new approach to higher property polyesters was suggested. © 2002 Wiley Periodicals, Inc. J Polym Sci Part A: Polym Chem 40: 852–863, 2002; DOI 10.1002/pola.10169