A process for preparing 2,2-dimethyl-2,3-dihydro-7-hydroxybenzofuran, which comprises (a) heating a 2,2-dihalo-6-halo-6-(1-haloisobutyl)cyclohexanone in the presence of a dehydrohalogenation agent, hydroylzing the resulting 2-isobutenyl-6-halophenol in the presence of a copper compound catalyst and an alkali, and cyclizing the resulting 1,2-dihydroxy-3-isobutenylbenzene in the presence of a cyclization catalyst, (b) heating a 2,2-dihalo-6-halo-6-(1-haloisobutyl) cyclohexanone in the presence of a dehydrohalogenation agent, reacting the resulting 2,2-dimethyl-2,3-dihydro-7-halobenzofuran with at least one metal selected from the group consisting of lithium, sodium and magnesium, oxidizing the resulting metal compound, and hydrolyzing the oxidized metal compound, or (c) heating a 2,2-dihalo-6-halo-6-(1-haloisobutyl) cyclohexanone in a carboxylic acid in the presence of a salt of a carboxylic acid.