An alternative manufacturing process-scheme was developed to synthesize gamma-butyrolactone with very high selectivity. Ruthenium trichloride was used as a redox catalyst and sodium hypochlorite as the oxidizing agent. Different process parameters such as temperature, effect of pH, mode of reaction and catalyst loading were studied to develop the most suitable process conditions. Under best suitable conditions, at 83% conversion level of 1,4-butanediol, 97% selectivity to the desired lactone was achieved in 5 h.