A new oxetane-containing polyether was synthesized by polycondensation of bisphenol-AF (BPAF) with 3,3-bis(chloromethyl)oxetane (BCMO) using the phasetransfer catalyzed method. The polycondensation proceeded very smoothly in aromatic solvents, catalyzed by quaternary ammonium or phosphonium salts, such as tetrabutylammonium bromide (TBAB) and tetrabutylphosphonium bromide (TBPB), to afford the polymer with high yield and molecular weight. Further, a polymer with relatively high molecular weight was obtained when the reactions were carried out in aromatic and lipophilic solvents such as benzene and nitrobenzene. The modification of this oxetane-containing polyether was easily achieved by carrying out ring-opening of the oxetane ring by using hydrogen chloride in methylene chloride, which produced a functional polymer containing hydroxyl and chloro groups. The oxetane-containing polyether was observed to be soluble in chlorinated aliphatic hydrocarbons such as methylene chloride and chloroform, as well as polar solvents such as DMSO, DMF, and DMAc, and also some common organic solvents such as benzene and toluene. However, it was insoluble in both aliphatic hydrocarbons as well as alcoholic solvents. The oxetanecontaining polyether was observed to start losing weight at around 300ΠC under nitrogen atmosphere, and 10% weight loss was measured to be 411ΠC. The glass transition temperature of the oxetane-containing polyether was measured to be 134ΠC and the wide-angle X-ray diffraction pattern revealed this polymer to be semicrystalline.