Cashew is one of the most important cash crops in Ghana where it is largely grown in the coastal, transitional and guinea savannah belt. Its cultivation is largely a small holder activity and serves as their main source of income. However, cashew orchards in these areas are expanding as a result of its economic potentials. Therefore cashew (Anacardium occidentale) seedling growth as influenced by the size of polythene bag for nursing was investigated using 4x6 inches, 4x7 inches, 5.5x6 inches, 5x7 inches, 5.5x7 inches and 7x10 inches polythene bag size categories in order to assess the possibility of using other polythene bag sizes smaller than what farmers use currently (7x10 inches) in relation to germination ability of the cashew seeds and seedling growth in order to minimize nursery production cost. The complete randomise design was used for two months of nursery trial with four replications. Data was collected on percentage germination, days to seedling emergence, number of leaves, plant height (cm), stem girth (mm), leaf area (cm2) and root length (cm) and were statistically analysed. The results showed a relationship between the parameters and the polythene bag sizes. The results showed that seedlings of polythene bag sizes 5.5x7 inches and 7x10 inches were superior to the sizes of polythene bag 4x6 inches, 4x7 inches, 5.5x6 inches and 5x7 inches seedlings both at emergence and seedling growth. The size of the nursery bag had a significant influence on seed germination, seedling vigour, number of leaves, plant height, stem girth, leaf area and root length at nursery growth. It was concluded that optimum performance was observed with bag size of 5.5 x 7 inches.