A new advanced composite based on poly-(amide-imide) matrix resin and graphite fiber has been developed. Polyamide-imide (PAI) resins are amorphous thermoplastics which have demonstrated good strength, toughness and thermal properties. Prepreg produced from PAI and continuous graphite fiber can be formed into laminates by compression or autoclave molding. Laminates exhibit use temperatures in the 400-500°F range, excellent damage tolerance and a good balance of mechanical properties. PAI resin is expected to be a major matrix resin candidate in the aerospace industry's search for improved composites.