Provided is a method for producing low-substituted hydroxypropyl cellulose having high flowability and favorable compactibility. The method includes essentially the steps of: bringing a solution of alkali metal hydroxide into contact with a powder pulp to prepare alkali cellulose; allowing the alkali cellulose and propylene oxide to react with each other to obtain a reaction product; mixing the reaction product with water, as a solubilization step, without adding any acid; neutralizing the alkali metal hydroxide contained in the reaction product; washing, dewatering and drying the neutralized reaction product after being subjected to the neutralizing step to produce dried low-substituted hydroxypropyl cellulose; and pulverizing the dried low-substituted hydroxypropyl cellulose.