2-Chlorocarbinol (CC-2) is a potential decontaminant of sulfur mustard (SM), an well known warfare agent. A new eco-friendly process has been developed for the production of CC-2 involving aqueous phase conversion of HCC to CC-2. Eco-friendly solvents were used in this process and experiments were carried out in aqueous medium for the synthesis of CC-2. The effect of different parameters on conversion, yield and purity of the product were studied. An efficient solvent extraction was used for in situ separation of the product from the reaction mixture. The reactor used in this process performed both unit operations i.e., the chemical reaction and separation, and can be termed as hybrid reactor. Proper solvent was selected for the separation of the product from the reaction mixture. Three flow sheets that can be used for the production of CC-2 are described and their merits and demerits are highlighted. A comparison of the different flow sheets has been highlighted. A complete process solution has been suggested for efficient production of CC-2. The process is cost effective, more environmental friendly and less hazardous compared to earlier reported processes. (c) 2007 Elsevier B.V. All rights reserved.