An improved and scalable method developed for the synthesis of 2-[4-[(4-chlorophenyl) phenyl methyl]-1-piperazinyl] ethanol, a key intermediate for Cetirizine which is antiallergic drug, Starting from commercially available 4-Chlorobenzhydryl piperazine and 2- Chloro ethanol in presence of base Di isopropyl Ethyl Amine and sodium Iodide as a catalyst the method is easy, inexpensive and reproducible and the process is clean and operationally simple.