The present invention relates to an isolated dimer impurity of Viloxazine or salts thereof, process for its preparation and use as a reference standard, which is chemically named as 1-(2-ethoxyphenoxy)-3-((2-(2-((2-ethoxyphenoxy)methyl)morpholino)ethyl)amino) propan-2-ol represented by the following structural formula-1b, referred to as ‘Dimer impurity of Viloxazine’.

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