AbstractThis paper describes a new continuous reactor method to prepare thermoplastic modified epoxy prepolymers for aerospace prepregs with the aim of replacing traditional batch reactors. Compared with batch reactors, the continuous reactor is capable of producing epoxy prepolymers through simultaneous dissolution of polyethersulfone (PES) and 4,4′‐diaminodiphenylsulfone in tetraglycidyl‐4,4′‐ diaminodiphenylmethane (TGDDM). In addition, concurrent chain extension reactions advance prepolymer molecular weights to desired viscosities in less than 2 min of mean residence time. Optical micrographs were used to define how process temperature influences PES dissolution in TGDDM in a continuous reactor. Kinetic studies confirmed that the chain extension reaction in a continuous reactor is similar to that in a batch reactor, and the molecular weights and viscosities of prepolymers were readily controlled through reaction kinetics. Atomic force microscopy was used to confirm similar cured network morphologies for formulations prepared from batch and continuous reactors. Additionally tensile strength, tensile modulus and fracture toughness analyses concluded that mechanical properties of cured epoxy matrices produced from the two reactors were equivalent. © 2014 Society of Chemical Industry