Regioselective hydrazidohydroxylation of styrenes with N-acetylaminophthalimide using phenyliodine(III) bis(trifluoroacetate) was carried out to afford 1-aryl-2-(N-acetyl-N-phthalimido)aminoethyl trifluoroacetates in high yields. The procedure is operationally simple and removal of trifluoroacetyl and phthalimido groups was performed by treatment of the trifluoroacetate with hydrazine hydrate in good yield. A synthetic study and a mechanistic proposal for the hydrazidohydroxylation are presented.