Using a simple new interferometric technique, the ordinary and extraordinary refractive indices of the nematic liquid crystal p-ethoxybenzilidene-p-n-butylaniline have been measured separately as a function of temperature. Changes in the refractive indices have been measured with an accuracy of ±0.005% and the absolute values with an accuracy of ±0.5%. Thermal expansivity data has been obtained by utilizing a specially constructed thermometer containing the sample. By using a recently developed Clausius–Mossotti relation for anisotropic fluids, the effective molecular polarizability and hence the orientational order parameter have been obtained from refractive index and density measurements as a function of temperature.