3,6-Dimethyl-4,5,6,7-tetrahydro-benzo[b]-furan-2(3H)-one (D menthofurolactone), first reported as a by-product in the oxidation of menthofuran and hitherto unknown in nature, is shown to be naturally occurring in Mentha piperita L. essential oil. In addition to a description of its synthesis and organoleptic properties, the key role of menthofurolactone in the flavour profile of peppermint oil is demonstrated by mint oil analysis and olfactory studies.