Abstract An efficient and practical method for the synthesis of indole as a key starting material for many useful chemicals is described. Using 2-nitrotoluene as starting material, hydroxymethylation with formaldehyde under alkaline conditions gave 2-(2-nitrophenyl) ethanol on a large scale. Raney Ni catalyst was used for both reduction of the nitro group as well as for the indole formation. The overall yield was 78% from 2-nitrotoluene.