A kinetic ballooning mode equation retaining full finite ion Larmor radius and ion magnetic drift resonance effects is derived by employing the highnballooning mode formalism. It is found that the critical &bgr; is smaller than the ideal magnetohydro‐dynamic critical &bgr;, except that when &eegr;i=O(&eegr;i≡d ln Ti/d ln N), that are identical. The finite Larmor radius effects reduce the growth rate but do not stabilize the mode. The ion magnetic drift resonance effects are destabilizing.