Abstract: Process for manufacturing .SIGMA.- caprolactone by oxidation of cyclohexanone by means of a crude C.sub.2 -C.sub.4 percarboxylic acid solution, resulting from the reaction of hydrogen peroxide on the corresponding carboxylic acid in the presence of a weak acid catalyst, with continuous elimination of water by azeotropic entrainment, characterized in that the molar ratio of cyclohexanone used to the percarboxylic acid is between about 0.50 to 0.99.