The addition reaction of ethylene oxide (EO) and hydrazine hydrate (N2H4·H2O) to β-hydroxyethyl hydrazine (HEH) is an important process for the synthesis of hydrazine-derived monopropellant in the aerospace industry. Due to the complexity of this reaction mechanism, it is difficult to reduce the formation of byproducts and efficiently obtain pure HEH. Hence it is necessary to investigate process behavior and establish kinetic network for further optimization. Here a continuous microflow system was developed to systematically investigate the synthesis of HEH under high pressure in the liquid–liquid form. A simple and effective pre-column derivatization method was applied to characterize and quantify the product. Subsequently, a thorough optimization of parameters, including N2H4·H2O concentration, molar ratio (N2H4·H2O/EO), temperature and reaction time, was conducted. Additionally, response surface methodology was employed to optimize the reaction conditions, illuminating the intricate interactions among the specified variables and achieving a high HEH yield of 96.97 %. Finally, a kinetic model was established, and the activation energies for the main reaction and side reaction were measured to be 38.31 kJ·mol−1 and 44.94 kJ·mol−1, respectively. This kinetic model can enable the accurate determination of kinetic parameters and provide guidance for the process intensification of this EO addition reaction.