The present invention relates to an improved process for the preparation of ethyl 2,3-dihydrobenzo[1,4]dioxin-2-carboxylate. More particularly the present invention provides a process for the preparation of ethyl 2,3-dihydrobenzo[1,4]dioxin-2-carboxylate in hydrocarbon solvent in the presence of a base and catalytic amount of a phase transfer catalyst.