The linearized flux-surface-averaged resistive magnetohydrodynamic equations, which include the electron diamagnetic drift and hot particle effects, are derived and studied numerically. The effect of electron diamagnetic drift on the trapped hot particle-driven resistive interchange mode is then investigated. It is shown that the effect can have a strong stabilization effect on the mode, similar to the conventional resistive interchange mode case. (C) 1997 American Institute of Physics.