The cashew industry produces extremely toxic effluent that seriously endangers life. Furthermore, cashew nut shell liquid (CNSL) a by-product, from the cashew industry is underutilized resulting in its presence in effluent. This liquid is extremely toxic and poses a threat to the environment if discharged without removal. Therefore, this comprehensive review delves into the intricacies of cashew nut processing, with a particular focus on the production of CNSL, its chemical profiling, and the imperative need for thorough characterization to ascertain its chemical composition. The manuscript underscores the potential of CNSL as a promising solution in the agricultural sector due to its skyrocketing potential as an insecticidal, fungicidal, antioxidant, anticorrosive, and termite resistant, and its ability to be blended with biodiesel as it improves lubrication properties in comparison with traditional diesel and helps extend the lifespan of engines, further necessitating minimal maintenance. It explores the necessity for chemical modifications in CNSL, presenting recent insights and advancements, particularly in the realm of phyto-nano-emulsions of CNSL with increased bioavailability. Additionally, it highlights the burgeoning role of artificial intelligence and machine learning models in predicting CNSL emissions, yield, crop health, and cashew kernel quality checks, offering a holistic decision support system for supply chain optimization. By succinctly mapping out the roadmap for CNSL production, chemical enhancements, and its application as an antifungal agent, the manuscript advocates for the integration of AI and ML to enhance agricultural outcomes and boost farmers' profits.