Morpholine-2,5-dione derivatives having substituents with benzyl-protected carboxylic acid, benzyloxycarbonyl-protected amine and p-methoxy-protected thiol groups, respectively, were prepared in 29-58% yield by cyclization of the corresponding N-[(2RS)-bromopropionyl]-L-amino acids. Polyesteramides with protected pendant functional groups were obtained by ring-opening copolymerization of either ε-caprolactone or DL-lactide with morpholine-2,5-dione derivatives having protected functional substituents. The copolymerizations were carried out in the bulk at 130°C using stannous octoate as an initiator and using low mole fractions (0,05, 0,10 and 0,20) of morpholine-2,5-dione derivatives in the feed. The molecular weight of the resulting copolymers ranged from 1,4 to 8,3 · 104. The ring-opening homopolymerization of morpho-line-2,5-dione derivatives with protected functional substituents was not successful. Polyesteramides with either pendant carboxylic acid groups or pendant amine groups were prepared by catalytic hydrogenation of the corresponding protected copolymers. Treatment of copolymers having pendant p-methoxybenzyl-protected thiol groups with trifluoromethanesulfonic acid resulted not only in the removal of the p-methoxybenzyl group but also in severe degradation of the copolymers, due to acidolysis of main-chain ester bonds.