A cationic microgel dispersion and the use of the dispersion in the method of cationic electrodeposition is disclosed. The dispersion is prepared by a process comprising dispersing in aqueous medium a mixture of a cationic polyepoxide-amine reaction product and a polyepoxide crosslinking agent and heating the mixture to a temperature sufficient to crosslink the mixture to form said cationic microgel dispersion. The dispersion can be formulated with ungelled cationic resins to form an aqueous resin dispersion which is suitable for use in the process of cationic electrodeposition providing for improved edge coverage and crater control.