a chain terpene alcohol having the formula ## str1 ## wherein r 1 and r 2 are the same or different and respectively represent hydrogen atom or a lower alkyl group is produced by oxidizing a chain unsaturated amine having the formula ## str2 ## wherein r 3 represents an alkyl group and heating the product for a thermal rearrangement to form a chain unsaturated hydroxylamine having the formula ## str3 ## and then reducing the chain unsaturated hydroxylamine with hydrogen in the presence of a catalyst selected from the group consisting of iron family elements , copper family elements , oxides thereof and copper chromite .