The present invention relates to stable pharmaceutical composition of Fluindione further comprising one or more antioxidant agents and one or more pharmaceutically acceptable excipients. In the formulation of the invention, the impurities, namely 2-(4-fluro-phenyl)-2-hydroperoxy-indan-1,3-dione or 2-(4-fluro-phcnyl)-2-hydroxy-indan-1,3-dione content is less than 0.5% by weight, on the basis of the total weight of the composition.