Sterile pharmaceutical stable autoclaved clear aqueous compositions of propofol (2,6-Diisopropyl phenol) suitable for parenteral administration are described. The compositions essentially consist of a complex of propofol with 2-hydroxypropyl-beta-cyclodextrin in a weight ratio of 1:30-1:60. This complex of propofol with 2-hydroxypropyl-beta-cyclodextrin produces a clear aqueous composition that is stable to autoclaving. The composition is effective as an anaesthetic agent. The process of making these synergistic compositions has been described.