A paper product having an antimicrobial composition dispersed with the substrate is provided. In particular, a paper towel such as those found in public washrooms or institutions comprises an antimicrobial composition. The substrate can also be a facial tissue, kitchen towel, serviette or any type of personal hygiene product. The antimicrobial composition preferably comprises a phenol-derived antimicrobial agent. The paper products of the present invention appear dry to the touch.