ABSTRACT “Polymorphic form of 5-(4-[4-(5-cyano-1H-indol-3-yl) butyl] piperazin-1-yl) benzofuran-2-carboxamide and process for preparing thereof” The present invention provides a solid state Form-Z of 5-(4-[4-(5-cyano-1H-indol-3-yl)butyl]piperazin-1-yl) benzofuran-2-carboxamide. The present invention also provides a process for preparing Form-Z of 5-(4-[4-(5-cyano-1H-indol-3-yl)butyl]piperazin-1-yl) benzofuran-2-carboxamide comprising the steps of i) reacting solid state form of 5-(1-piperazinyl) benzofuran-2-carboxamide or its salts with 3-(4-chlorobutyl)-1H-indole-5-carbonitrile an organic solvent in presence of a base to obtain crude vilazodone free base ii) purifying the crude vilazodone free base of step (i) in an organic solvent iii) treating the purified vilazodone free base of step (ii) with an organic solvent to obtain solid state form-Z of vilazodone. The present invention further provides a pharmaceutical composition comprising a therapeutically effective amount of an amorphous form of vilazodone hydrochloride and use of solid state Form-Z of vilazodone for the treatment of major depressive disorders.