There is an increasing demand for nonalcoholic wines owing to religious beliefs, responsible driving, harmful effects of alcohol, and strict alcohol regulatory measures. Alcohol removal methods, used for nonalcoholic wine production, have negative impact on flavour characteristics and consumer acceptance. This study seeks to determine the fermentation kinetics and physicochemical properties of nonalcoholic wine developed from cashew apple juice using cold fermentation in combination with special yeast. The extracted cashew apple must was inoculated with S. ludwigii and Z. rouxii yeast culture separately and allowed to ferment at 0°C–4°C for 7 days in a completely randomized design. The pH, total soluble solids (TSS), temperature, specific gravity, titratable, volatile, and nonvolatile acidities of the fermenting must and wine were determined using standard methods. All the yeast strains maintained comparable fermentation trends with respect to pH, TSS, specific gravity, volatile acidity, titratable acidity, and fixed acid, but with different alcohol yields of 0.89 and 0.68% for S. ludwigii and Z. rouxii, respectively. The wine produced using S. ludwigii had a lower reducing sugar (3.58 mg/L) and TSS (6.65°Brix) compared to Z. rouxii (6.23 mg/L and 7.65°Brix), respectively. However, no significant differences existed in pH, titratable acidity, specific gravity, alcohol content, and colour characteristics: brightness (L∗). The matured wine products recorded 0% alcohol content and had distinct appealing colours. The application of cold fermentation combined with special yeast in nonalcoholic wine production is promising and deserves more research to explore its full potential in meeting the increasing demand for nonalcoholic wines.