Polysiloxane-modified epoxy resins were prepared through the reaction of epoxy resin with polydimethylsiloxanesbearing pendant N-(β-aminoethyl)-γ-aminopropyl groups. The morphology and properties of the cured epoxy resins modifiedby the polysiloxanes were investigated. It was found that the phase structure and properties of the cured epoxy resins dependmainly on the amino group content in the polydimethylsiloxane and the level of the modifier. The change of phase structure in the cured epoxy resin systems was responsible for the dramatic change in their mechanical and surface properties.