Cardanol also known as Cashew Phenol is obtained in the distillation process of technical CNSL under reduced pressure. The distillation takes place at high temperature and Distilled CNSL vapours are received through high vacuum. The average unsaturation of about two double bonds in the side chain of the Cardanol molecules make cross linking easy and provides a satisfactory gradual drying and baking properties to paints prepared from it. Because of its peculiar structure Cardanol Varnishes have high electric Insulation, greater resistance to water, chemicals and good flexibility.