In this paper, a new higher-order bidirectional associative memory model is presented. It is an extension of Tai's HOBAM(higher-order bidirectional associative memory) and Jeng's MIBAM(modified intraconnected BAM). The stability of the new model, in synchronous and asynchronous updating modes, is proven by defining an energy function such that it can ensure all the training pattern pairs to become its asymptotically stable points. Using statistical analysis principle, the storage capacity of the proposed model is estimated. The computer simulations show that this model has not only higher storage capacity but also better error-correcting capability.