The effect of methanol on the solubility of Nd(2)O(3) in HCl medium in the temperature range of 25-55A degrees C were studied. HCl-CH(3)OH was observed to be a better solvent than HCl-CH(3)OH-H(2)O and hydrochloric acid for the dissolution of Nd(2)O(3) mainly due to prevention of neodymium hydroxide and dissolution increased with increase of HCl concentration even at high HCl concentrations. Presence of methanol in the medium was determined to cause corresponding decreases in conductivity, E(SCE), pH values with corresponding increase in E(R) values. Neodymium compounds formed in HCl-CH(3)OH medium at 25A degrees C were isolated and identified using X-ray diffraction, thermal and chemical analysis methods and their thermal behaviour were investigated between 25-1100A degrees C. NdCl(3) x x (1)CH(3)OH and NdCl(3) x x (2)CH(3)OH x 4.14H(2)O (x (1) + x (2) = 2.8) were formed in non-aqueous medium and these compounds were converted into NdCl(3), NdCl(2.37) and NdCl(3) x 0.47CH(3)OH with complete and partial loss of water and methanol around 240A degrees C respectively. Methanol was completely removed around 390A degrees C with formation of NdCl(2.37) (77.5%) and NdOCl (22.5%) and NdOCl was detected as the major stable phase above 700A degrees C.