As worldwide environmental and ecological regulations become strict, water soluble system presents great potential in the new VOC-compliant, high-performance anticorrosive coating systems. In this study, hydantoin epoxy resin (HE) was first synthesized. Then HE/titanium bis (triethanolamine) diisopropoxide (TE) composite resin was obtained by mixing HE and TE at a certain temperature. The structure was characterized by 1H nuclear magnetic resonance (NMR) and fourier transform infrared spectroscopy (FTIR). The curing behavior and thermal stability were assessed with differential scanning calorimetry (DSC) and thermo gravimetry (TG) analysis. The mechanical properties of the cured coatings were discussed under the corresponding standards. The chemical resistance properties were tested by immersion test. Our study revealed that the HE/TE composite resin was water soluble and could be self-cured by heating. It possessed well thermal resistant properties, excellent physical and mechanical properties, and good chemical resistance, which made it suitable for the surface coating industry.