One-pot catalytic synthesis of butyrolactones from alkynols under mild conditions is described here. The methodology involves the use of the K2 [Ni (CN) 4]/NaBH4 system in presence of KCN and water. According to the experimental evidences, a possible mechanism pathway is suggested, which involves the nickel-catalyzed reductive cyanation of alkynol, followed by nitrile hydration, reduction of double bond and lactonization.