Cocoa butter (CB) plays a pivotal role in confectionery, facing escalating demand and associated challenges, necessitating alternatives. A novel cocoa butter equivalent (CBE) was developed from mahua oil (Madhuca longifolia) through two-stage solvent fractionation. Neutralized mahua oil first underwent acetone fractionation at 4°C for 4 h. The resulting stearin was blended with 5% palm stearin before undergoing a second acetone fractionation at 4 °C for 3 h. Fractionation increased the symmetrical triacylglycerols by 35% in mahua CBE, comprising 19% POP, 35% POS, and 22% SOS (76%), meeting regulatory requirements. The melting range of CBE fell within the CB range where peak melting temperature shifted from 2 to 18 °C, ensuring close resemblance. CBE blended with Malaysian CB across varying proportions (10–90%) demonstrated up to 40% full compatibility with CB regarding solid fat content, crystalline structure (β2 crystals), and thermal profile. Mahua CBE offers a commercially viable and globally utilized substitute for exotic fat-based CBEs, notably beneficial in confectionery. Thus, mahua oil's transition from household to commercial applications enhances its overall value proposition, delivering versatility and economic benefits across sectors.