Abstract: Phenolic resin has a good fire\|resistance, but it is brittle with poor cure processing characteristics. So the application of the resin is hindered. In this paper the toughness of phenolic resin is improved, and its composite reinforced by glass fibers is manufactured. The flamability, smoke density, oxygen index (OI) and released gas of the composite are tested, and its fire\|resistance mechanism is analysed by infrared\|spectrum, thermal weightless dynamics, SEM, etc. Moreover, some mechanical properties of the composite are investigated. The results show that the composite with the modified phenolic resin has both good fire\|resistance and mechanical properties. So it can be used as interior decorative materials of civil airplanes.