A photothermographic material exhibiting satisfactory photographic properties can be prepared using an aqueous dispersion of components. A photosensitive layer is formed by dispersing a binder and silver halide in an aqueous solvent containing at least 30 wt% of water to form an aqueous dispersion, coating the aqueous dispersion onto a support, and drying the coating. The binder is a polymer having an equilibrium moisture content of 0.1-2 wt% at 25 DEG C and RH 60% or a thermoplastic resin. The binder is preferably based on a styrene-butadiene copolymer. Fog is suppressed even when the material is stored in a humid atmosphere.