The present invention provides an improved process for preparation of midodrine hydrochloride (la). The process comprises reaction of 2-amino-l(2,5-dimethoxyphenyl)-ethanone hydrochloride of formula (Va) with N-BOC-glycine and 1,1carbonyldiimidazole (CDI) to give novel intermediate, tertiary-butyl-N-({[2-(2,5-dimethoxyphenyl)-2-ketoethyl]-carbamoyl} methyl) carbamate of formula (VI), which after reduction with sodium borohydride and treatment of the resulting compound (VII) with hydrochloric acid afforded midodrine hydrochloride (I) conforming to regulatory specifications.
