PURPOSE: To obtain hydroxyethylcellulose of a markedly improved solubility characteristics in an aqueous solution, by allowing an alkali to act upon a cellulose material in the presence of a surfactant and subsequently reacting the product with ethylene oxide.

CONSTITUTION: In a process for producing hydroxyethylcellulose comprising allowing an alkali to act upon a cellulose material which is in the form of a slurry in a medium comprising an organic solvent and water to form alkali cellulose, and subsequently reacting this alkali cellulose with ethylene oxide; a surfactant is added in the step of forming said alkali cellulose to heighten the penetrability of the alkali into cellulose, and subsequently this alkali cellulose is reacted with ethylene oxide in the presence of the surfactant. It is preferred that the cellulose material is ground to such a size as to permit easy agitation of its slurry by a grinder prior to the reaction.