.The cure kinetics of blends of epoxy resin (4,4'-tetraglycidyl diaminodiphenyl methane; TGDDM)/curing agent (diaminodiphenyl sulfone; DDS) with ATPEI (amine terminated poly-etherimide) - CTBN (carboxyl terminated poly (butadiene-co-acrylonitrile)) block copolymer (AB type) were studied using differential scanning calorimetry under isothermal conditions to determine the reaction kinetic parameters such as activation energy and reaction constants. Final cure conversion decreased with increasing amount of AB in the blends. A diffusion controlled reaction was observed as the cure conversion increased, and the curing reaction was successfully analyzed by incorporating the diffusion control term in the rate equation for the epoxy/DDS/AB blends. The fracture toughness was improved to about 350% compared to that of the unmodified resin at 30% of AB block copolymer. This is attributed to the formation of co-continuous morphology between the epoxy phase and AB block copolymer phase. By increasing the amount of AB, the modulus of the cured blends decreased, which was due to the presence of CTBN rubbery phases.