The invention relates to novel aqueous coating compositions containing epoxy urethane (glycidyl carbamate) functional resin. An aqueous coating composition comprises a polyfunctional oligomer having at least two epoxy urethane functional groups and a polyalkylene oxide chain, an optional surfactant, and water. The aqueous coating compositions of the invention can be dispersed in water with or without added surfactants to form a dispersion containing no volatile organic solvent. The invention provides a method for making aqueous coating compositions containing epoxy urethane functional resin as well. Water-dispersible epoxy urethane compounds of the aqueous coating compositions are also provided.