Disclosed is a process for the preparation of 1,4-cyclohexanedimethanol from terephthalic acid. Terephthalic acid is esterified with (4-methylcyclohexyl)methanol and the terephthalate ester hydrogenated to 1,4-cyclohexanedimethanol in a 2-stage process. The (4-methylcyclohexyl)methanol that is formed during the hydrogenation step is recycled to the esterification reaction. After removal of the (4-methylcyclohexyl)methanol from the crude hydrogenation product, the 1,4-cyclohexanedimethanol product can be recovered and purified by a phase separation and distillation.