Abstract: Mixture of phenolic compounds are major composition of liquid products from liquidification of cashew nut shell. Phenol formaldehyde resin friction materials were prepared from this type of liquid. The advantages for this process include the improved mechanical property of the materials and the reduced cost of the materials. The components and properties of cashew nut shell liquid were introduced. The preparation methods of cashew nut shell liquid phenol formaldehyde resin were described, as well. The development of the resin's modification methods and the research progress of the modified resin friction materials were summarized. Finally, the development tendancies of this resin are prospected.