The use of cardanol, a renewable natural resource, in place of a phenol or diphenol, in the synthesis of two different epoxy systems has been studied in this work. Cardanol, prepared by the distillation of cashew nut shell liquid (CNSL), was epoxidised using epichlorohydrin in presence of caustic soda catalyst at different reaction intervals and the products were characterized by spectroscopy, gel-permeation chromatography and by determining the epoxide equivalent. The epoxide equivalent increased sharply with time of epoxidation and reached almost a limiting value around 9 h. Cardanol, being less reactive, undergoes epoxidation to a smaller extent than phenol or bisphenol. Although these epoxy compounds do not form cross-linked networks due to being mono-functional, they are found to be effective in producing relatively flexible systems when reactive blended with commercial DGEBA. Co-epoxides containing bisphenol A and cardanol in varying molar compositions were also synthesised and characterised. Introduction of 20 mol% cardanol into bisphenol A resulted in a resin having reduced tensile, impact and compressive strengths upon curing by a polyamine hardener. However, the resin showed considerable improvement in elongation-at-break without much decrease in energy absorption.