An economical new process route has been developed for the large-scale synthesis of memantine hydrochloride (1) an anti-Alzheimer's drug. The procedure involves the conversion of 1, 3-dimethyl adamantane (2) to formamide intermediate 8 as a key step, followed by hydrolysis to (1-amino-3, 5-dimethyl adamantane) hydrochloride (1) in good yield.