Cashew nut shell liquid (CNSL) is a by-product of cashew nut processing industry and is a potential natural alternative to chemically derived phenol. It was reacted with formalin to form Resol type phenolic resin which is further used to prepare jute and glass fiber composites. Resol resin was characterized by FTIR spectroscopy. The molecular mass was determined by using GPC. The composites prepared using the Resol resin asmatrix and glass fiber and jute fiber as reinforcing agents, were tested for their mechanical properties and chemical resistance. Rockwell hardness, Izod- Impact Strength, flexural strength and flexural modulus and chemical resistance of these composites were compared and studied.