A new diamine monomer having ether and azomethine linkages in the long pendent group was synthesized. New polyimide was prepared by reacting the new diamine with BTDA and nanocomposites were prepared with silicon dioxide as nanofiller. SEM analysis shows a uniform distribution of the nanopowder in the polyimide matrix. TGA shows that the polyimide and nanocomposites have good thermal stability with the T10% values varying between 440 and 458°C. DSC analysis shows Tg values between 210 and 230°C. The neat polyimide shows high elongation at break and stretchability (260%) but low tensile strength. The nanocomposites of polyimide show lower elongation at break but have improved tensile strength. The chemically imidised polyimide shows good solubility in solvents like N, N‐dimethyl formamide, N, N‐dimethyl acetamide, and N‐methyl 2‐pyrrollidone. POLYM. COMPOS., 40:832–843, 2019. © 2018 Society of Plastics Engineers