Mahua (Madhuca indica) is a widely grown tree in tropical regions of India. The estimated annual production of it is higher as compared to karanja oil and neem oil. In the present work mahua oil was reacted with diethanol amine resulting in the formation of mahua oil fatty amide (MFA) which was further reacted with bisphenol-A forming mahua polyetheramide resin (MPEA). The structures of the synthesized intermediate and polyetheramide resin were confirmed by spectroscopic methods and estimated physico-chemical properties like acid value, iodine value, saponification value, hydroxyl and acid value. The prepared MPEA resin was converted to polyurethane coatings by reacting with methylene diphenyl diisocyanate (MDI) and toluene diisocyanate (TDI) with 1.1:1 NCO/OH ratio. Thermal stability and coating properties of polyurethane coatings on steel panels and particle board panels were investigated. The coating performance of the resin was tested by measurement of gloss, mar resistance, flexibility, scratch, pencil hardness, adhesion and chemical resistance using standard methods. The results presented better physico-mechanical as well as corrosion resistance performance of the polyurethane coating obtained from mahua oil based polyetheramide resin.