PURPOSE: After an initial condensation product of resol type resin is dehydrated, the ester-interchange reaction is effected in the presence of an organotitanium diester or more polyester, thus producing solid phenolic resin being free from blocking and caking and having good storage stability and handlability.

CONSTITUTION: The reaction of 1mol of phenol with more than 1mol of formaldehyde in the presence of a nuetral metal salt or alkaline catalyst is effected until almost of the formaldehyde is consumed to produce an initial condensation product of resol resin. Then, water is removed from the product under reduced or normal pressure until the hydrolysis of all of the organotiatanate ester that is to be added later can be avoided, and 0.01W0.1mol, based on the phenol, of an organotitanate di- or more polyester is added. Futher, the dehydratation is continued to effect the ester-interchange reaction between the initial condensation product of resol resin and the organotitanate.