Polymer/liquid crystal composite membranes were cast from a 1,2-dichloroethane solution of polycarbonate (PC) and N-(4-ethoxybenzylidene-4'-n- butylaniline) (EBBA). The mixing state of the polymer/liquid crystal composite membrane was investigated on the basis of differential scanning calorimetry, x-ray, density, sorption isotherm and sorption—desorption studies and also by electron microscopic observations. EBBA molecules in the composite membrane exist in an almost molecularly dispersed state up to an EBBA fraction of 30 wt%, and in the case of EBBA fractions above 30 wt% form a crystal domain as the mutual continuous phase among the network of polycarbonate fibrils. The composite membrane containing EBBA of 60 wt% can be handled as a homogeneous medium when considering gas permeation. The diffusive permeability coefficient to water reveals a distinct jump in the vicinity of the crystal—liquid crystal phase transition temperature of EBBA. The permeability coefficients, P, to hydrocarbon gases increases 100-200 times over several degrees in the phase transition temperature range. P for hydrocarbon gases decreases with increasing number of carbon atoms below the phase transition temperature, but increases with increasing number of carbon atoms above it. These results suggest that the permeation process is predominantly controlled by diffusion mechanism below the transition temperature of EBBA, while the solubility factor significantly affects gas permeation above it.