Food safety and waste utilization are the serious current issues to be addressed quickly. Food preservation is a technique to increase the shelf life of food and inhibit the growth of microorganisms. Research studies have described various hazardous effects of conventional packaging materials towards the environment. In this scenario, biodegradable films with antimicrobial agent are becoming an interesting alternative source of “Go Green” food packaging. Hence, this investigation emphasized the extraction of anacardic acid from liquid of cashew nut waste and its application as food preservatives, to replace the non-degradable packing material. The cashew nut liquid showed about 71-75% of anacardic acid with potent antibacterial effect against food pathogens such as E. coli, Listeria monocytogenes, Streptococcus faecalis, Salmonella typhi and Shigella boydii. Packing material was prepared with extracted anacardic acid (10 mg, 15 mg and 20 mg) along with different combination of polymers (chitosan alone, chitosan: gelatin: carboxymethyl cellulose, and chitosan: gelatin). Packaging film prepared with anacardic acid containing chitosan showed anti-mold activity in bread and anti-browning property in cut apples. The application of anacardic acid extracted from the waste in packaging material will elicit changes in the food preservation that replace and reduce the risk of commercially available packaging materials.