The dipole moment of N-(p-methoxybenzylidene)-p-butylaniline (MBBA) has been determined in dilute benzene solution as 7.34 × 10–30 C m. Its decrease with rising concentration leads to an equilibrium constant for molecular aggregation in solution. Dipole moment evaluation for the nematic and isotropic phases of pure MBBA show that there is no significant change in the state of the polar molecules at the phase transition. Dielectric relaxation studies on dilute benzene solution of MBBA and on the isotropic liquid phase show that the relaxation is as expected from the reorientation of a rigid molecule.