Abstract: A process for making a phenolic resin comprises reacting an phenolic compound (e.g., resorcinol) with an olefinically unsaturated compound (e.g., styrene) and an aldehyde (e.g., formaldehyde) in the presence of a compatibilizing agent which is at least partially miscible with water and also preferably at least partially miscible with the phenolic resin produced. Use of the compatibilizing agent substantially reduces foaming in the process and therefore increases the production output.