Abstract: Methylol ketones are produced by reacting a ketone with an aldehyde in the presence of a tertiary amine catalyst. The resulting polyols undergo the reactions common to beta hydroxy ketones, specifically, condensation reactions and substitution reactions involving the hydroxyl functionality; and addition reactions involving the carbonyl group. Each polyol molecule of the invention has from one to six hydroxyl groups in the beta position relative to the carbonyl group. The polyols are further characterized by complete water solubility and compatibility with a wide range of polymers, rendering these polyols useful as extenders and co-reactants.