The invention is directed to the one-step hydrogenation/esterification of arylmethyleneoxyaryloxy alkanoic acids to produce (hydroxyphenoxy) carboxylates. The process comprises the hydrogenation and esterification of the aryloxy alkanoic acid in the presence of a palladium hydrogenation catalyst and an acidic esterification catalyst preferably utilizing the alcohol for the esterification as the hydrogenation solvent. The acid serves the dual role of hydrogenation promoter and esterification catalyst.