The dehydrative cyclization of N-(o-hydroxybenzoyl)threonine derivative la is efficiently promoted by the combined use of molybdenum(VI) oxides and benzoic acids bearing electron-withdrawing substituents. In the presence of ammonium molybdate [(NH4)(2)MoO4, 10 mol %] and pentafluorobenzoic acid (C6F5CO2H; 10 mol %), dehydrative cyclization of la was conducted in toluene under azeotropic reflux conditions to give 2-(o-hydroxyphenyl)oxazoline 2a in 76 % yield. Furthermore, the first total synthesis of the antitumour substance BE-70016 was achieved using the catalytic dehydrative cyclization of la as a key reaction.