We investigated the phase separation, cure kinetics and thermomechanical properties of diglycidyl ether of bisphenol‐A/4,4′‐diaminodiphenylsulfone/poly(ethylene oxide)–poly(propylene oxide)–poly(ethylene oxide) (PEO–PPO–PEO) triblock copolymer (TBCP) blends. Fourier transform infrared spectroscopy, differential scanning calorimetry, and atomic force microscopy revealed that the blends exhibited heterogeneous phase morphology in which the TBCP formed dispersed domains in epoxy matrix, due to reaction induced phase separation. A fraction of phase‐separated PEO phase underwent partial crystallization whereas another fraction formed interphases between the dispersed domains and epoxy matrix. Moreover, the dispersed PEO chains improved the compatibility and interfacial adhesion between the matrix and domains and, consequently, significantly improved the mechanical properties of epoxy resin. Furthermore, the thermal degradation studies and contact angle measurements disclosed that the dispersed domains were well protected by the epoxy matrix. © 2016 Wiley Periodicals, Inc. J. Appl. Polym. Sci. 2017, 134, 44406.