Computational investigations reported in this work have proposed the mechanism involved in the synthesis of dibenzo‐18‐crown‐6 (DB18C6) from catechol and bis(2‐chloroethyl) ether in presence of base. The transition states on the reaction path have been identified, and the corresponding barrier heights are estimated. Paths related to the side‐product formations, such as benzo‐9‐crown‐3 and 1,2‐bis[2‐(2‐chloroethoxy)ethoxy]‐benzene, have been also tracked. The cation‐assisted (Na+ and K+ ions) cyclization process (template effect) creates more structurally ordered reactant and transition state species. This facilitates the cyclization step that is an intramolecular SN2 process. Additionally, it eliminates possibilities of different side‐product formations giving better yield of the crown ether, as reported previously. This cyclization step has a comparatively lower barrier height for Na+ system (by 3 kcal/mol) in gas phase than K+ system; however, it becomes reverse in 1‐butanol where the barrier height is almost 2.5 kcal/mol lower during the K+DB18C6 formation. Consequently, a faster cyclization has been found in this solvent from the reaction rate studies for the potassium system. This is in‐line with the experimental observations reported on the alkali‐metal‐catalyzed benzo‐18‐crown‐6 ether formation reactions. The dipole moment value of the transition state involved in this step for the larger alkali metal ion system is found to be significantly higher (by 5–8 D) than the reactant species.