A process for producing a pivaloylacetic acid ester comprises reacting pivaloyl chloride with an acetoacetic acid ester of an alkyl group having 1 to 4 carbon atoms in the presence of at least one nitrogen-containing basic compound (a) selected from among pyridine compounds, N,N-dialkylanilines and imidazole compounds and from 0.01 to 0.5 mole equivalent, based on the pivaloyl chloride, of a magnesium compound (b) to thereby prepare a pivaloylacetoacetic acid ester and then alcholyzing or alkali-hydrolyzing the pivaloylacetoacetic acid ester to thereby give a pivaloylacetic acid ester having a high purity at a low cost.