A method and system is provided for generating a group of phonetically similar masked data. The present application provides a method and system for generating a group of phonetically similar masked data; comprises preprocessing of input dataset values comprising a list of fictitious data values to be used as masked data; determining a plurality of groups of phonetically similar data values present in the dataset list; and deriving metaphone for each input data value to be masked; generating a first numeric code from derived metaphone value of input data value to be masked; selecting one group of phonetically similar data values out of the plurality of groups of phonetically similar data values based on the generated first numeric code; and generating a second numeric code from input data value for selecting a masked value from a plurality of fictitious data group.