Abstract: The present invention relates to a process for preparation of venlafaxine or salt thereof wherein the said process comprises of a) reducing cyano intermediate of Formula 2 with Raney Nickel KALCAT-8030 in presence of an ammoniacal alkanol to get the amine intermediate of Formula 4, b) N-methylating the amine intermediate of Formula 4 with aqueous formic acid and a source of formaldehyde, c) isolating venlafaxine or salt thereof from the reaction mass.