The emergence of microbial resistance to synthesized drugs has become a major concern across the globe, thereby putting pressure on the already existing public health care. This study aims to develop a potent antimicrobial compound with fewer adverse effects, thereby bridging the gap between conventional synthetic antimicrobials and naturally derived bioactive compounds with improved safety and efficacy profiles. Cashew nut shell liquid (CNSL) was extracted from cashew nut shells through 72-hours maceration. FTIR analysis of CNSL indicated weak O-H stretching at 3011.7 band, C=C stretching at 1643.8 band, and C-H bending at 1449.9 band. The CNSL was heated at 140oC for 3 hours to obtain decarboxylated CNSL. The Decarboxylated CNSL showed distinct O-H stretching at 3362.1 band, aromatic C=C stretching at 1591.6 band, and C-H bending at 779.0 band. Cardanol isolated from decarboxylated CNSL exhibited broad O-H stretching at 3272.6 band and aromatic C=C stretching at 1457.4 band. Hydroxylated cardanol synthesized using reductone showed O-H stretching at 3268.9 band, tertiary alcohol at 1341.8 band, and aromatic C=C stretching at 1423.8 band. Antibacterial studies revealed that hydroxylated cardanol was active against bacterial isolates, including E. coli, Enterobacter cloacae and Serratia marsecens. However, hydroxylated cardanol showed no activity against Bacillus subtilis.