This invention relates to a novel process for the dual production of essential oil and artemisinin from the plant Artemisia annua, said process comprising extracting the plant with hexane, partitioning the hexane extract between hexane and acetonitrile, hydrodistillation of hexane residue and Marc to yield essential oil, further fractionation of acetonitrile solvent between hexane-benzene mixture to remove artemisinic acid, chromatographing of the acetonitrile phase to produce substantially pure artemisinin, the artemisinic acid is reduced to obtain dihydro artemisinic acid which is then oxidised in a single step to form artemisinin.