Abstract: A method is disclosed for preparing a stable aqueous emulsion of a phenolic resin which is characterized by adding polyacrylamides and, if required, further adding dispersing agents to the phenolic resin during or after the completion of a reaction of components which comprise (A) between about five (5) and one hundred (100) parts by weight of one or more phenols, (B) between zero (0) and about ninety-five (95) parts by weight of aldehyde-reactive modifier, and (C) in excess of 0.4 mole of aldehydes based on the total amount of one (1) mole of (A) and (B) described above.Emulsions obtained by the present invention are useful as binders for inorganic materials and organic materials, as compounding ingredients for latex, as emulsion and water paints and so forth; and, furthermore, there are various uses such as grouting agent, reinforcing agent for synthetic rubber, self-hardening binder for foundry sands, raw material of phenolic resin foam, binder for abrasive cloth and paper, and the like.