Phase transfer catalysed (PTC) reactions are used in several pharmaceutical and fine chemical industrial processes. We have developed a novel stirred tank reactor (Yadav reactor) to conduct batch and continuous liquid−liquid−liquid (L-L-L) PTC reactions. The reactor had a provision of using three independent stirrers for each phase, thereby having complete control over the rate of mass transfer across the two interfaces. In the continuous mode of operation, the top and bottom phases were continuously fed into the reactor while the middle phase was used as a batch. All three stirrers were used independently, thereby having independent control of mass transfer resistances. The reactor in a batch mode showed higher conversion and selectivity compared to a conventional batch reactor. L-L-L PTC reaction in the continuous mode was successfully performed without loss of the middle catalyst phase and with steady conversion and selectivity. The reaction of guaiacol with epichlorohydrin was conducted as a model reaction, with a 76% conversion of epichlorohydrin, 85% selectivity of guaiacol glycidyl ether, and the middle catalyst phase was stable throughout the process.