In this study a novel N-vinylcaprolactam (NVC)-containing copolymer of acrylic-itaconic acid was synthesized, characterized and incorporated into Fuji IX conventional glass-ionomer cement (GIC). Subsequently, the effects of incorporation of synthesized terpolymer on the mechanical properties of GIC were studied. The synthesized terpolymer was characterized using (1)H nuclear magnetic resonance, Fourier transform infrared and Raman spectroscopy. The viscosity and molecular weight of the terpolymer were also measured. The compressive strength (CS), diametral tensile strength (DTS) and biaxial flexural strength (BFS) of the modified GICs were evaluated after 24h and 1week of immersion in distilled water at 37 degrees C. The handling properties (working and setting times) of the resulting modified cements were also evaluated. One-way analysis of variance was used to study the statistical significance of the mechanical strengths and handling properties in comparison to the control group. The results showed that NVC-containing GIC samples exhibited significantly higher (P<0.05) DTS (38.3+/-10.9MPa) and BFS (82.2+/-12.8MPa) in comparison to Fuji IX GIC (DTS=19.6+/-11.4MPa; BFS=41.3+/-10.5MPa). The experimental cement also showed higher but not statistically significant values for CS compared to the control material (CS for NVC-containing sample=303+/-32.8MPa; CS for Fuji XI=236+/-41.5MPa). Novel NVC-containing GIC has been developed in this study, with a 28% increase in CS. The presented GIC is capable of doubling the DTS and BFS in comparison to commercial Fuji IX GIC. The working properties of NVC-containing glass-ionomer formulations are comparable and are acceptable for water-based cements.