Dimethyl ether (DME), also known as methoxymethane, is the organic compound with the formula CH₃OCH₃, simplified to C₂H₆O. The simplest ether, it is a colorless gas that is a useful precursor to other organic compounds and an aerosol propellant that is currently being demonstrated for use in a variety of fuel applications. It is an isomer of ethanol.

Approximately 50,000 tons were produced in 1985 in Western Europe by dehydration of methanol:

The required methanol is obtained from synthesis gas (syngas). In principle, the methanol could be obtained from organic waste or biomass. Other possible improvements call for a dual catalyst system that permits both methanol synthesis and dehydration in the same process unit, with no methanol isolation and purification.

Both the one-step and two-step processes above are commercially available. Currently, there is more widespread application of the two-step process, since it is relatively simple and start-up costs are relatively low. There is also a one-step liquid-phase process in development.

The largest use of dimethyl ether is as the feedstock for the production of the methylating agent, dimethyl sulfate, which entails its reaction with sulfur trioxide:

This application consumes several thousand tons of dimethyl ether annually.

Dimethyl ether can also be converted into acetic acid using carbonylation technology related to the Monsanto acetic acid process:

Dimethyl ether is a low-temperature solvent and extraction agent, applicable to specialised laboratory procedures. Its usefulness is limited by its low boiling point (−23 °C (−9 °F)), but the same property facilitates its removal from reaction mixtures. Dimethyl ether is the precursor to the useful alkylating agent, trimethyloxonium tetrafluoroborate.

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