To provide a phenol resin composition for friction materials requiring no degassing in molding, producing no voids or cracks and having good flexibility and high abrasion resistance, and its production method.

The composition contains a novolak type phenol resin, an epoxy resin and a hardening catalyst, and at least part of the phenol resin is modified with a thermoplastic resin. Preferably, the thermoplastic resin consists of one or more of NBR, phenoxy resins and ethylene-acrylic rubber.