Abstract: Thermosetting phenolic resin modified with silicone is directly synthesized with polyphenylmenthylsiloxane, phenol and formaldehyde. The synthetic method is much simpler than others. The curing condition, heat-resistant and adhesive property of phenolic resin modified with silicone are studied with IR, DSC, TGA, shear strength and peel strength. It is proved that the thermosetting phenolic resin modified with silicone is good at heat-resistance,toughness,shear strength and dissolution property,which can be used as heat-resistant adhesive and matrix resin in airplane and aerospace industry.