A matrix resin for carbon fiber reinforced composite was developed that consisted of resol type phenolic and difunctional epoxy resin (PR-EP) condensate or adduct. Carbon fiber reinforced composite with fiber volume fraction of 0.6 was prepared, with PR-EP matrix containing 0, 50, 100, 150, and 175 parts of epoxy resin per hundred parts of phenolic resin (php), especially a synthesized resol type. One-shot and prepreg techniques have been adopted and the study of loss of volatiles has indicated the superiority in terms of favorable processability of prepreg technique over the other. FTIR spectroscopic analysis confirmed the PR-EP adduct formation at the prepreg preparation stage. The improvement in properties such as tensile strength and elongation at break was observed in resin matrices with epoxy and phenolic resin; however, the flexural strength and modulus remained more or less unaltered. The prepreg technique of composite preparation has resulted in substantial improvement in mechanical properties and the same was attributed to the formation of PR-EP adduct and low volatiles during cure. Composites of carbon fiber reinforced PR-EP matrix developed here are likely to meet the requirement of aerospace structures in view of the realization of a wide spectrum of properties.