Abstract: This invention relates to a process for preparing 2-pyrrolidone (also called 2-pyrrolidinone) and N-methylpyrrolidone (also called N-methylpyrrolidinone) from diammonium succinate in fermentation broth. In the first stage of this invention, renewable carbon resources are utilized to produce diammonium succinate through biological fermentation. In the second stage of this present invention, diammonium succinate is converted into 2-pyrrolidone and N-methylpyrrolidone through a two step reaction. Both the steps of the reaction leading to the production of 2-pyrrolidone and N-methylpyrrolidone are carried out in a solvent phase to prevent the loss of succinimide through hydrolysis.