Caprolactam is prepared by a process in which(a) the 5-formylvalerate is reacted with excess ammonia and hydrogen in the presence of an alkanol as the solvent and in the presence of a hydrogenation catalyst under superatmospheric pressure in the liquid phase at from 40.degree. to 130.degree. C.,(b) excess ammonia and hydrogen are separated off from the reaction mixture,(c) the resulting reaction mixture is reacted with water at elevated temperatures with simultaneous removal of alkanols, and(d) the reaction mixture thus obtained is heated to 150.degree.-370.degree. C. and .epsilon.-caprolactam is obtained.