Stable dispersions of phenolic resins, particularly bisphenol-A/formaldehyde resins, for use in e.g., baking enamels, coatings, adhesives, binders, etc., are disclosed. The dispersions have low levels (e.g., <0.1% by weight) of free aldehyde, thereby reducing environmental harms associated with aldehyde emissions. Low free aldehyde levels are achieved using melamine as an aldehyde scavenger during preparation. It has now been discovered that melamine, in contrast to other scavengers of aldehydes, does not adversely affect dispersion stability, interfere with later processing operations, or negatively impact the final resin product quality (e.g., after curing).