Transverse alignment of liquid crystalline epoxy (LCE) resin was effectively induced on carbon fiber (CF) surface by amine treatment. Aliphatic and aromatic amines were grafted on oxidized CF surface, and anisotropic orientation of LCE network was identified with X-ray diffraction and it was correlated with mechanical properties of CF/LCE composites. Vertical alignment of LCE enhanced the transverse dynamic modulus of the composite. Especially, aromatic diamines were effective in promoting the interfacial adhesion as well as transverse composite modulus. (c) 2006 Wiley Periodicals, Inc.