A pressure sensitive hot melt adhesive contains thermoplastic rubber such as styrene isoprene copolymer, a copolymer of vinylpyrrolidone and vinylacetate, fatty acid and, usually, tackifying resin. The composition is water soluble or water dispersible which facilitates removal of labels by washing and recycling of scrap material in label production. The composition gives better properties, especially peel strength, than other water-soluble or dispersible hot melt compositions.