2-(6-oxido-6 H-dibenz( c, e)(1,2)oxaphosphorin-6-yl)-1,4-naphthalenediol (DOPONQ) was prepared by the addition reaction of 9,10-dihydro-9-oxa-10-phosphaphenanthrene-10-oxide (DOPO) with 1,4-naphthoquinone. The phosphorus-containing diol (DOPONQ) was used as a reactive flame retardant by an advancement reaction with the diglycidyl ether of bisphenol-A epoxy (DGEBA) resin at various stoichiometric ratios. DOPONQ-containing advanced epoxy was separately cured with various dicyanate esters to form flame-retardant epoxy/cyanate ester systems. The effect of the phosphorus content and dicyanate ester structure on the curing characteristic, glass transition temperature, dimensional stability, thermal stability, flame retardancy, and dielectric property was studied and compared with that of the control advanced bisphenol-A epoxy system. The DOPONQ-containing epoxy/cyanate ester systems exhibited higher glass transition temperatures as well as better thermal dimensional and thermal degradation stabilities. The flame retardancy of the phosphorus-containing epoxy/dicyanate ester system increased with the phosphorus content, and a UL-94 V-0 rating could be achieved with a phosphorus content as low as 2.1%.