Beneficial lactic acid bacteria (LAB) were rationally targeted to bioprocess underutilized byproduct cashew apple juice (CAJ) for enhancing phenolic bioactive-associated antioxidant, anti-hyperglycemic, and anti-hypertensive properties for developing antioxidant nutraceutical antidotes relevant for type 2 diabetes. Lactobacillus plantartan, L. casei and Bifidobacterium longum were used to bioprocess CAJ and then aqueous and 12% ethanol extracts of fermented CAJ were analyzed for total soluble phenolic (TSP) content, phenolic acid profile (HPLC), total antioxidant activity, type 2 diabetes relevant alpha-glucosidase, and alpha-amylase enzyme inhibitory activities and hypertension relevant angiotensin-I-converting (ACE) enzyme inhibitory activity using in vitro assay models. Overall, high TSP content, moderate to high antioxidant activity, moderate ACE inhibitory activity and high aglucosidase and alpha-amylase enzyme inhibitory activity was observed in bioprocessed CM. Therefore, this study suggests that bioprocessing of CAJ from cashew byproducts with L. plantarum and L. casei is an effective strategy for obtaining type 2 diabetes relevant antioxidant nutraceuticals.