NOVELTY - Preparing bicalutamide (I) comprises (a) oxidizing N-(4'-cyano-3'-(trifluoromethyl)phenyl)-3-((4"-fluorophenyl)thio)-2-hydroxy-2-methylpropionamide (III), (b) raising and maintaining the reaction temperature, (c) cooling the reaction mass and isolating the solid, (d) adding mixture of water and water immiscible ester solvent, (e) separating the organic ester solvent layer, (f) optionally repeating the further extraction of aqueous layer with the solvent, (g) optionally adding activated carbon followed by filtering the organic layer, (h) evaporating the solvent, and (i) isolating (I).    USE - (I) is useful for treating chronic lymphocytic leukemia (CLL), non-Hodgkin's lymphoma (NHL), multiple myeloma and breast cancer.    ADVANTAGE - The process provides (I) with improved yield and purity in an economical, industrial and environmentally friendly manner.    DETAILED DESCRIPTION - Preparing bicalutamide (I) comprises: either (a) selectively oxidizing N-(4'-cyano-3'-(trifluoromethyl)phenyl)-3-((4"-fluorophenyl)thio)-2-hydroxy-2-methylpropionamide (III) in presence of an 1-3C organic alcohol solvent, 1% ortho tungstic acid and aqueous hydrogen peroxide, (b) raising the temperature up to 50 degrees C or more and maintaining the temperature while stirring until the content of (III) achieved till less than 1%, (c) cooling the reaction mass and isolating the solid, (d) adding mixture of water and water immiscible ester solvent in a ratio of 1:2, (e) separating the organic ester solvent layer, (f) optionally repeating the further extraction of aqueous layer with water immiscible ester solvent, (g) optionally adding activated carbon followed by filtering the extracted organic layer, (h) evaporating the water immiscible ester solvent, and (i) isolating (I); or (a1) selectively oxidizing (III) with aqueous hydrogen peroxide in presence of a non-halogenated organic acid solvent, (b1) mixing the reaction mass of step (a1) with aqueous sodium bicarbonate solution followed by stirring for duration up to at least 30 minutes, (c1) extracting the reaction mass with water immiscible ester solvent, (d1) optionally adding activated carbon followed by filtering the extracted organic layer, (e1) evaporating the water immiscible ester solvent, and (f1) isolating (I). INDEPENDENT CLAIMS are included for:    (1) purifying (I) comprising mixing (I) with ethyl acetate and heating the solution containing (I) up to at least 50 degrees C followed recovering ethyl acetate and isolating the product, substantially free from impurities A, B, C and D; and    (2) (I), obtained by the process, having crystalline characteristic and d-spacing values and X-ray diffraction pattern as given in the specification.