Under the action of acid catalyst, the phenol and formaldehyde are condensed by heating and then alkylated with terpene. The reaction temperature is 95-210 ℃. When the reaction temperature of 160 ~ 210 ° C, adding the appropriate amount of bleaching agent. And the low-boiling components are distilled off. The  produced by this method has the advantages of light color, high softening point and good oil solubility. Can replace the expensive tert-butyl phenolic resin and can be applied to paint, ink, cable, printing, rubber, plastics, adhesives and other industries.