In this paper, acrylamide was co-reacted with cyclohexanone and formaldehyde to prepare aldehyde-ketone resins with high hydroxyl value. The effects of aldehyde-ketone ratio and acrylamide amount on the hydroxyl value and viscosity of the prepared aldehyde-ketone resins were studied. The acrylamide-modified aldehyde-ketone resin was further reacted with isophorone diisocyanate, and then dispersed in water to prepare polyurethane emulsion. After being stained by the prepared emulsion, the dyeing effect, friction resistance and soap-washing resistance of the cotton fabrics were investigated. The results show that the hydroxyl value of the acrylamide modified aldehyde-ketone resins was enhanced effectively, compared to that of the aldehyde-ketone resin without acrylamide. Besides, the hydroxyl content of acrylamide-modified aldehyde-ketone resin could be increased by increasing the formaldehyde content properly. The chF-AM-resin-6 aldehyde-ketone resin, whose reactant molar ratio is n(acrylamide)∶n(formaldehyde)∶n(cyclohexanone)=0.05∶1.60∶1, showed a maximum hydroxyl value (up to 375 mg KOH/g), 244% higher than that of the aldehyde-ketone resin without acrylamide. In addition, the samples dyed with 15% chF-AM-resin-6-PU emulsion exhibited the best dyeing effect (42.7% increase of K/S value) and soap-washing resistance (increased from 3 to 4), compared with the control sample.