An edge coated gasket includes a base sheet made of compressible gasket material and having opposed faces and an interior edge surrounding and defining an aperture. An edge coating of polymer or other material is disposed on and seals the interior edge of the base sheet and may project beyond the facial planes of the base sheet to define protruding rims extending around the aperture. Face coatings may also be applied to one or more of the faces extending in relatively narrow strips around the aperture of the base sheet. When clamped between flange surfaces, the edge coating engages, conforms to, and seals against the flange surfaces to provide a seal against both interfacial and intersticial migration of fluid past the gasket. At the same time, the inherently good compression failure resistance of the compressible gasket material of the base sheet is preserved. Thus, a gasket with enhanced sealability and compression failure resistance is provided. A unique method of making such an edge coated gasket is also disclosed.