An epoxy resin (EP) with excellent fire retardancy, good transparency, and satisfactory thermal stability has been obtained by introducing a new N/P/S containing flame retardant (HBD) into EP composites. When the phosphorus content was 0.48 wt%, EP/HBD reached V‐0 rating with the limiting oxygen index of 33.5%. The cone calorimeter test (CC) indicated that the incorporation of HBD resulted in 1.5 times increase in ignition time, a 50% decrease in the maximum of heat release rates, 40% reduction of total heat release, and 50.7% decrease in total smoke production compared with EP. Besides, the fire‐resistant behavior of EP/8% HBD is much better than the EP materials modified by similar P/N/S flame retardants reported in literature. The fire‐retardant mechanism of HBD on EP was also analyzed by Raman, scanning electron microscope, Py‐GC/MS, and Fourier transform infrared spectroscopy. The results show that HBD plays an important role in the formation of a dense intumescent carbon layer and gas phase quenching.