In this study, CNSL (Cashew nut shell liquid), an economically viable feedstock among the other contemporary resources, has been considered as an appropriate source of alternate fuel.Herein, CNSL was extracted from cashew nut outer shell, a waste product, through a unique approach of steam treatment process followed by mechanical crushing technique. In contrast to the past studies that have attempted to use unprocessed CNSL directly as substitute for diesel, this study has resorted to use processed CNSL by cracking it using zeolite catalyst. Thus, both the extraction of CNSL from cashew nut outer shell and processing of it through catalytic cracking process to help synthesize CC-CNSL (catalytically cracked CNSL) are different, which underscores the significance of the current work. In wake of adopting such distinct methodologies with fuel characterization, the properties of CC-CNSL such as viscosity and calorific value were figured out to be improved. Subsequently, CC-CNSL20 (20% CC-CNSL and 80% diesel) was tested at different fuel injection pressure such as 200 bar, 235 bar, 270 bar and 300 bar so as to optimize its use in a single cylinder diesel engine. From the engine experimental study, CC-CNSL20 was found to evince better engine performance than diesel and the composite emissions of CO (carbon monoxide), HC (hydrocarbon), NO X (oxides of nitrogen) and smoke, computed based on ISO 8178 D2 standard test cycle, were found to be better than diesel and incompliance with the legislative norms for genset.