Oil extracted from fruits of Semecarpus anacardium Linn. is widely known for its therapeutic utility especially in traditional Indian System of Medicine (ISM). Analytical studies on S. anacardium have established its anti-infective, anti-fungal, anti-bacterial properties. However, in ISM, a test based on sinking and floating of fruits of S. anacardium has been mentioned and it has been claimed that only sunk fruits yield better therapeutic potential. Based o this concept, present work was planned. I this work, fruits of S. anacardium were divided into two categories by separating procured fruits and subjecting them for sinking test in water. The sunken fruits are considered as acceptable and the floating fruits are considered as unacceptable. The oil extraction was done as per ISM method by using earthen pot and invert distillation. The obtained oil from acceptable fruits (SAO-1) and unacceptable fruits (SAO-2) was analyzed by Gas chromatography and mass spectroscopy (GC-MS). Total 44 and 32 phytoconstituents are detected in SAO-1 and SAO-2 respectively. The numbers of toxic constituents in SAO-1 is detected less compared to SAO-2. Therapeutic potentials such as anti-microbial, anti-bacterial, anti-fungal, HIV type 1 type entry inhibitor, fungicidal, hemolytic, hyperconjugation and homohyperconjugation are found based on the chemical composition of the compounds detected in GC-MS. The findings represent need of more exploratory researches on oil of S. anacardium extracted based on concept of ISM.