Hydroxycarbonylation of 1-phenylethanol (PE) in molten salt media was studied systematically. Phosphine-free palladium catalysts are active in bromide-containing molten salts such as tetrabutylammonium bromide and [BMIM] [Br]. The nature of the anion, CO pressure and the presence of PPh3 affect the reaction rate and selectivity. A two-route reaction scheme is proposed to explain the regularities of the process. The catalytic system can be used repeatedly by simple extraction of products with diethyl ether. Nine cycles were carried out without loss of activity. (c) 2006 Elsevier B.V. All rights reserved.