Thermoplastic toughening of epoxy resins has been actively studied since the early 1980s with considerable progress in property improvement and understanding having been made since then. The main advantage in using thermoplastics to toughen epoxy resins is that their incorporation need not result in significant decreases in desirable properties such as modulus and yield strengths as is generally the case when rubbers are used as toughening agents. However, the predominant criteria for achieving optimum toughness enhancement in the thermoplastic toughening of epoxy resins are still not all that clear from the literature. This review has focused upon the importance of the thermoplastic endgroups, the material's morphology, the ductility of the matrix and the chemical structure of the thermoplastic, it summarizes what the authors believe are the important requirements for good thermoplastic toughening.