The present invention provides a process for preparing donepezii or a salt thereof the process comprising reducing a l-benzyl-4-[(5,6-diemexy-l-indanon-2-yl)methyiene]pyridonium halide of formula (II), wherein X is bromide or chloride, in the presence of an ionic compound, a solvent, a catalyst and a source of hydrogeo, to form donepezii and optionally converting the