Epoxy composites filled with phase-separation formed submicron liquid rubber (LR) and preformed nanoscale powdered rubber (PR) particles were prepared at differ- ent filler loading levels. The effect of filler loading and type on the rheological properties of liquid epoxy resin suspensions and the thermal and mechanical properties of the cured composites as well as the relative fracture behaviors are systematically investigated. Almost unchanged tensile yield strength of the cured epoxy/PR composites is observed in the tensile test compared with that of the neat epoxy; while the strength of the cured epoxy/LR composites shows a maximum value at ??4.5 wt% and significantly decreases with increasing LR content. The glass transition temperature (Tg) of the cured PR/epoxy has shifted to the higher temperature in the dynamic mechanical thermal analysis compared with that of the cured pure epoxy and epoxy/LR compo- sites. Furthermore, the presence of LR results in highly improved critical stress intensity factor (KIC) of epoxy resin compared with the corresponding PR nanopar- ticles. In particular, the PR and LR particles at 9.2 wt% loading produce about 69 and 118% improvement in KIC of the epoxy composites, respectively. The fracture sur- face and damage zone analysis demonstrate that these two types of rubber particles induce different degrees of local plastic deformation of matrix initiated by their debonding/cavitation, which was also quantified and correlated with the fracture toughness of the two epoxy/rubber systems.