A synthesis of (1S,2R)-1-amino-2-indanol (1), a key component of an HIV protease inhibitor, was accomplished through (R)-2-hydroxy-1-indanone ((R)-3), which was prepared by an intramolecular Friedel-Crafts acylation of (R)-2-acetoxy-3-phenylpropanoic acid readily available from D-(R)-phenylalanine. Alternatively, (R)-3 was obtained by an enzymatic resolution of (+/-)-2-acetoxy-1-indanone. Ketone (R)-3 was converted into 1 through an oxime formation and diastereoselective hydrogenation.