The present invention provides aqueous compositions for making damage tolerant coatings comprising a blend of (i) from 2 to 30 wt. %, based on the total weight of solids in the composition, of an acid or anhydride functionalized polyolefin dispersion having an average particle size of from 0.2 to 5 microns, and (ii) a film forming dispersion of one or more epoxy resins chosen from epoxy resins having an epoxy equivalent weight (EEW) of from 150 to 4,000 having an average particle size of from 0.2 to 1.0 microns, wherein the polyolefin dispersion is stabilized with from 2 to 8 wt. %, based on the total weight of solids in the composition, one or more anionic surfactants, such as a sulfate containing surfactant, and, further wherein, the compositions have a pH of from 3 to 8.