Abstract: An improved method for preparing epoxy-modified silicone resins is proposed in which the reaction catalyst is an alkali halide, such as sodium chloride and potassium chloride, or a combination of the alkali halide and an alkyl titanate, such as tetraisopropyl titanate and tetrabutyl titanate. The epoxy-modified silicon resin thus obtained is further reacted with a polybasic carboxylic acid or its anhydride. Varnishes containing these modified silicone resins can give coating films with very strong resistance to chemicals and solvents. Furthermore paints prepared with these varnishes as the vehicle are very stable, and exhibit no thixotropy even after a very long period of storage.