SummaryThe reaction of lauric acid with diethanolamine in the presence of excess alkylolamine results initially in the formation of N,N′‐bis(2‐hydroxyethyl)lauramide. This compound is responsible for the surface‐active properties of the alkanolamides. Under the conditions of the reaction the amide undergoes a thermal rearrangement to the lauroyl ester of diethanolamine, which in turn is converted to the dilauroyl amido ester of diethanolamine. The excess diethanolamine converts both amino ester and amido ester to N,N′‐bis(2‐hydroxyethyl)lauramide.