B-stage phenolic resins, although inherently less water sensitive than the A-stage phenolics, have not, heretofore, been utilized for the purpose of increasing the water resistance of polyvinyl acetate emulsion adhesives because of their high degree of incompatibility with such emulsions. This incompatibility is due to the inherent water insolubility of the B-stage phenolics. Although stable B-stage phenolic resin solutions may be prepared using a variety of organic solvents, either alone or in conjunction with water, when such solutions are admixed with aqueous polyvinyl acetate emulsions, the usual result is the coagulation of such polyvinyl acetate emulsions.