The crystal-nematic phase transition of a copolyester consisting of 20 mol% poly(ethylene terephthalate) and 80 mol% p-hydroxybenzoic acid (PHB) was characterized by depression of the crystal-nematic transition by the addition of a liquid crystal diluent. This copolyester contains blocks of crystalline PHB. Its transition behavior was compared with that of a random copolyester with diluent of the same composition. From the extrapolated transition temperature depression data, the heat of transition per mole of p-oxybenzoate was calculated as about 1. 3 kcal/mol, with an entropy of about 2 cal/deg mol. This assumes that only the p-oxybenzoate unit crystallized from the nematic state. The validity of the Flory-Huggins model for this transition point depression was confirmed graphically by comparison with two different thermotropic-liquid crystal polyesters. These results may represent the first reported crystal-nematic temperatures and heats generated by the dilution method for liquid crystal copolyesters of this type.