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Attempt has been made in this study, to utilize castor oil in the preparation of polyesteramide resins. Castor oil was first converted into dehydrated castor oils (DCO) to improve drying characteristics. DCO was then converted into diethanolamide {(N, N‐ bis hydroxethyl) castor oil amide} of mixed fatty acids using 0.5 per cent sodium methoxide as a catalyst and converted to polyesteramide resins after reacting with various dibasic acids such as phthalic anhydride, sebacic, succinic and adipic acids in presence of xylene as azeotropic solvent. The resins obtained were then analysed for its physico‐chemical, film performance properties and resistance to various chemicals.

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