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Phenolic resins have been widely used as a binder for friction materials, but due to the demand for increased performance requirements, it has made the friction suppliers look at modifications to standard phenolic resins. Various modified phenolic resins have been developed and their performance levels and capabilities have been improved. Concern for both the environment and the work place must be considered during the development of any new product. New phenolic resins for friction should therefore be improved to address environmental issues as well as performance issues. New processes have been developed to reduce free phenol and increase yield, at the same time reducing the waste phenol by-product.. Technology for “dust free” resins provides a cleaner working environment at reduced production costs. Furthermore, a combination of these environmental technologies and modifications solves both performance requirements and environmental concerns in the friction industry.