PURPOSE: To obtain a phenolic resin composition containing nitrogenous bonds which can give a carbon fiber reinforced composite material excellent in strengths and flame retardancy by reacting the compounds in the presence of a specified catalyst and specifying the degree of modification with a polyamide resin.

CONSTITUTION: The phenolic resin composition is prepared by reacting a phenol with an aldehyde in a molar ratio of 1.0-2.0 in the presence of a catalyst comprising a bivalent metal hydroxide and ammonia and modifying the product with a polyamide resin to a degree of modification of 3-20wt.% based on the solid matter of the resin. The bivalent metal hydroxide used as the reaction catalyst can improve the heat resistance of a cured resin prepared from the resin composition, and the nitrogen atoms contained in the resin can improve the adhesion of the resin composition to carbon fibers constituting a composite material and can impart improved strength thereto.