To provide a method for producing a substituted aromatic compound, by which problems on Smiles rearrangement reaction can be solved and by which various aromatic compounds useful as intermediates for producing medicines, agrochemicals or many general-purpose chemicals can efficiently be produced by the utilization of the Smiles rearrangement reaction.

This method for producing the substituted aromatic compound represented by formula (II) (the ring A is an aromatic homogeneous or heterogeneous ring which may have one or more constituents; X is O or the like; Y is NR1 or the like; B is an aromatic homogeneous or heterogeneous ring which may have one or more substituents or ethylene group which may have one or more substituents) or its salt, comprising subjecting a compound represented by formula (I) or its salt to the Smiles rearrangement reaction, is characterized in that the Smiles rearrangement reaction is carried out in an amide-based solvent in the presence of a basic hyroxide.