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The project envisages development of novel polymers based on cardanol, a constituent of a natural product, viz.cashewnut shell liquid. Polyamides using diamine have been synthesized and characterized. The various steps included preparation of nitrocompound NDMT [2-nitro-dimethyl terephthalate] followed by coupling reaction with potassium salt of cardanol leading to 2-(3- pentadecyl) phenoxy dimethyl terephthalate / 2-(3-pentadecyl) phenoxy 1,4 dimethylbenzene; Hydrolysis of this compound by ethanolic KOH to produce 2-(3-pentadecyl) phenoxy benzene 1, 4 – dicarboxylic acid. The polyamide was finally obtained by solution polymerization technique using m-phenylene diamine [MPDA] and 2-(3-pentadecyl) phenoxy benzene 1, 4 dicarboxylic acid. The intermediate products and polyamide were characterized.