The present invention provides a process for producing tolterodine of the formula (1) or its salt, which comprises a step reacting a compound of the formula (2) with a base to obtain a reaction product; a step reacting the reaction product with a compound of the formula (3) to obtain a compound of the formula (4); and a step eliminating the protective group from the compound of the formula (4), and also provides a process for producing the compound of the formula (3).