Since dawn of civilization,wood is indispensable part of human life. With the progress of time,wood has found innumerable uses in various fields of life. To meet this inexhaustible requirement of wood, man has carried out mass slaughter of trees both legally and illegally leading to deforestation and threatening ecological imbalance. To bring about an end to this butchery and to restore ecological balance scientists tried to find feasible,low cost wood substitute. In the coastal area of India huge quantity of cashew nuts is produced.From the cashew nut shell an oily liquid,rich in phenol derivatives was extracted. This cheaper CNSL and natural jute fiber are used as major raw materials. Effects of different parameters were studied during the preparation of resin and the prepared composite was characterized with respect to tensile strength, flexural strength, machinability, etc. The ultimate composite is chemically and bacteriologically more stable than wood as well as free from rot,weathering and has no action of termite and woodworm and can be used as wood substitute. It will be of immense use in domestic and industrial purposes in near future.