The present invention relates to an improved process for the preparation of 5-chloro-N-({(5S)- 2-oxo-3-[4-(3-5 oxo-4- morpholinyl)phenyl]-l,3-oxazolidin-5yl} methyl)-2-thiophene carboxamide (Rivaroxaban) and intermediates thereof. Also disclosed herein is an improved process for the preparation of rivaroxaban via novel intermediate and use thereof for the preparation of medicament useful for the prevention and treatment of deep vein thrombosis and pulmonary embolism in patients undergoing knee and hip replacement surgery. Further, present invention provides a cost effective and eco-friendly process for producing Rivaroxaban substantially free of residual solvent(s) at industrial scale.
