Abstract: 1,4-butanediol is prepared from allyl alcohol containing allyl acetate and water. The allyl alcohol is subjected to a hydroformylation reaction in the presence of an organic solvent, a rhodium complex, and a phosphorous compound under an atmosphere of carbon monoxide and hydrogen, to produce a hydroformylation product, which is extracted with an alkaline aqueous solution in the presence of carbon monoxide and/or hydrogen. After the extraction, an extracted raffinate solution containing the rhodium complex in the organic solvent is recycled through the same hydroformylation process, while the extracted aqueous solution containing the hydroformylation product is subjected to a hydrogenation reaction in the presence of hydrogen, with a hydrogenation catalyst added, to produce 1,4-butanediol.