A novel cardanol-based siloxane (SAECD), which has silicon groups and reactive epoxy groups, was synthesized. Its structure was confirmed by Fourier transform infrared spectrometry and 1 H nuclear magnetic resonance. Then, phenolic foams (PFs) modified with different contents of SAECD were prepared. While addition of appropriate amount of SAECD into resin matrix enhances the flexural strength of PFs, incorporation of SAECD into PFs leads to a reduced pulverization ratio. The limiting oxygen index (LOI) increases continuously with the increasing addition of SAECD into PFs. The results of the cone calorimeter test showed that the addition of 3% SAECD could effectively reduce the heat release rate and total heat release of the foam by the condensed phase flame retardant mechanism. The TTI of the modified foam was delayed by 19 s; the PHRR, mean HRR, and THR of the modified foams decreased by 9.10%, 4.11%, and 7.55%, respectively, compared with those of the pristine PF. In addition to the increase in the toughness of the PF, SAECD addition can also improve the flame retardant properties of the PF. K E Y W O R D S ORCID Caiying Bo https://orcid.org/0000-0002-7032-9931 F I G U R E 9 Photographs of char residues of PF and 3% SAECD modified PF [Color figure can be viewed at wileyonlinelibrary.com]