Condensation of 2-nitrobenzaldehyde (I) with methyl phenylacetate (II) in the presence of lithium diisopropylamide in cold THF provided hydroxyester (III). Reduction of the nitro group of (III) with concomitant cyclization by hydrogenation over Pd/C in EtOAc produced the dihydroquinolinone (IV). Further hydrogenolysis of the hydroxyl group of (IV) over Pd/C in AcOH gave (V), which was finally alkylated with benzyl bromide and NaH to yield the N-benzylquinolinone.