The cashew nut shell liquid (CNSL) is a by-product of the cashew kernel industry. Two methods were used to produce the CNSL. The CNSL was extracted using a heating mantle by roasting the cashew nut shells at temperatures between 70ºC and 80ºC and solvent extraction method was heated at the temperature of 70ºC. The yield from the roasting method gave 6% while the solvent method gave 23%. Physicochemical analysis was carried out on the extracted CNSL, the termite bioassay test was conducted to know its effectiveness on termites. The application of the CNSL is wide, when polymerized can be used for resins, in pharmaceuticals for treatment of warts, ringworms, Elephantiasis, for preservation of furniture, wooden floors and fine carved woods, buildings from termites and insects destruction, road construction, as epoxy resins in paint, varnishes, production of printing ink, etc. The volume of cashew nut produced annually poses a challenge for waste disposal of cashew nut shell generated along the production line. Research and development have shown that valuable chemicals can be extracted from the shell. Therefore, it is wise to extract as much of the cashew nut shell liquid (CNSL) as possible prior to disposal. This will ultimately help to reduce the environmental load for the residual portion of the shell.