NOVELTY - Improved preparation of lacosamide (I) comprises e.g. subjecting the substituted (R)-2-carboxyamino-3-methoxy-propionic acid (V) to cyclization with paraformaldehyde or formalin in presence of acid catalyst to obtain substituted (R)-4-methoxymethyl-5-oxo-oxazolidine-3-carboxylic acid (VI); and condensing (VI) with benzylamine in organic solvent in presence or absence of a base to obtain substituted (1-benzylcarbamoyl-2-methoxy-ethyl)-carbamic acid (VIII) with or without isolation of substituted (1-benzylcarbamoyl-2-methoxy-ethyl)-hydroxymethyl-carbamic acid (VII).    USE - (I) is useful for treating epilepsy. No biological data given.    ADVANTAGE - The process is a simple, commercially viable, economical and environment friendly process for preparing the lacosamide, in high yield and purity.    DETAILED DESCRIPTION - Improved preparation of lacosamide ((R)-2-acetamido-N-benzyl-3-methoxypropionamide) of formula (I) comprises: (a) protecting D-serine of formula (II) with N-protecting agent of formula (III) in presence of a base with or without isolation of substituted (R)-2-carboxyamino-3-hydroxy-propionic acid compound of formula (IV); (b) O-methylating (IV) with methylating agent in presence of a base with or without isolation of the substituted (R)-2-carboxyamino-3-methoxy-propionic acid compound of formula (V); (c) subjecting (V) to cyclization with paraformaldehyde or formalin in presence of acid catalyst to obtain substituted (R)-4-methoxymethyl-5-oxo-oxazolidine-3-carboxylic acid compound of formula (VI); (d) condensing (VI) with benzylamine in organic solvent in presence or absence of a base to obtain substituted (1-benzylcarbamoyl-2-methoxy-ethyl)-carbamic acid compound of formula (VIII) with or without isolation of substituted (1-benzylcarbamoyl-2-methoxy-ethyl)-hydroxymethyl-carbamic acid compound of formula (VII); deprotecting (VII) or (VIII) with acid or base in organic solvent with or without isolation of 2-amino-N-benzyl-3-methoxy-propionamide compound of formula (IX); (f) treating (IX) with acylating agent in presence or absence of base in organic solvent to obtain (I); and (g) optionally purifying (I).    R = C6H5CH2-, CH3, C2H5, -(CH3)2CHCH2- or (CH3)3C-; and    Z = leaving group preferably halo, or (CH3)3CO.    INDEPENDENT CLAIMS are also included for:    (1) the compounds (VI) or (VII);    (2) a process for preparing (VI) comprising the steps (a)-(c) as above per se; and    (3) use of (VI) or (VII) for the preparation of (I).