The present invention provides a cost-effective and industrially viable process for preparation of Eprazinone dihydrochloride. The process involves a novel synthetic route comprising reaction of tertiary butyl piperazine-1-carboxylate (II) with 2-bromo-1-phenylethanone (IV), followed by reduction and subsequent alkylation of the resulting alcohol to give tertiary butyl piperazine-(4-(2-phenyl-2-ethoxyethyl-l-yl))-l-carboxylate (VII). Further reaction of compound (VII) with paraformaldehyde and propiophenone (VIII) in presence of hydrochloric acid gives Eprazinone dihydrochloride (Ia). The final product thus obtained possesses desired purity and complies with regulatory specifications.
