Ethylene glycol and caprolactam were added during the synthesis process of melamine formaldehyde (MF) resins to develop a new MF formulation with high flexibility, storage stability, and low formaldehyde emissions that can be used for the impregnation of papers. It was demonstrated that the MF resins with amounts of ethylene glycol (molar ratio of ethylene glycol to melamine was 1.0) and caprolactam (molar ratio of caprolactam to formaldehyde was 0.12) achieved higher storage stability, flexibility, and lower free formaldehyde content. The impregnated papers made from these MF resins displayed good dry and wet tensile strength and passed the relevant standard specifications for decorative paper on wood-based panels. The size exclusion chromatography (SEC) and Fourier transform-infrared spectrometry (FT-IR) studies showed that the MF resins produced via incorporation of ethylene glycol and caprolactam had a different molecular weight distribution and polymeric structure.