The present invention relates to 2-phenyl indole derivative of quercetin. More particularly, the present invention relates to 2-phenyl indole derivative of quercetin that is prepared by conversion of keto quercetin into a phenyl hydrazone derivative by treating with phenyl hydrazine. This invention relates to the process of preparing the 2-phenyl indole derivative of quercetin. This invention relates to the process of preparing the 2-phenyl indole derivative of quercetin which has the characteristics of high yield and cost effective.