Levulinic acid can be converted to γ-valerolactone in 83-86% yield under microwave heating with 10 mg of 5% Pd/C per mmol levulinic acid as the catalyst and 2.0 equivalents of KOH in ethanol or iso-propanol. The alcohol is used as the hydrogen source as well as the solvent. Pd/C catalyst could be reused for five catalytic cycles without appreciable loss in activity.