To provide a simple production method of a substituted γ-butyrolactone where a mild reaction condition is applied.

The production method of a substituted γ-butyrolactone comprises steps of causing an α,β-unsaturated carboxylic acid to react with an unsaturated organic compound in the presence of a palladium catalyst to produce a cyclic unsaturated compound and subsequently adding a reducing agent to the reaction system to carry out a reduction reaction of the cyclic unsaturated compound.