Blends of poly(ethylene oxide) (PEO) and resole type phenolic resin were prepared by a solution cast method using water as a solvent. The cured blends were made by heat curing without using any catalyst. The blends were characterized by dynamic mechanical analysis (DMA), which indicated that PEO forms compatible blend with the resole. The glass transition values, read from the DMA traces, showed a positive shift as compared to the theoretical values calculated by the Fox equation. This suggests a strong H-bonding interaction between the phenolic resole and PEO as established by Fourier transformed infrared spectroscopy. Flexural test indicated an enhanced flexibility of the blends when compared to the neat phenolic resin. The fracture surface analysis by using a scanning electron microscope (SEM) revealed an increase in plastic deformation with increasing PEO concentration in the blend. (c) 2012 Wiley Periodicals, Inc. J. Appl. Polym. Sci., 2013