The high-yielding six-step synthesis of 7-hydroxy-2, 6-dimethylchromeno [3, 4-d] oxazol-4- one from commercially available 2, 4-dihydroxy-3-methylacetophenone is described. Coumarin constitutes a useful synthon for coumarin antibiotic synthesis. A new methodology for oxazole formation applicable to 3-aminocoumarins has been developed, and a mechanistic rationalization is proposed.