A liquid triphase system made by an aqueous phase, an organic phase, and an ionic liquid was designed and applied to the catalytic hydrogenation/dehydration of biomass-derived levulinic acid to γ-valerolactone. This paper demonstrates that, by operating at 100−150 °C and 35 atm of H2, both in the presence of Ru/C or of a homogeneous Ru precursor, the use of the triphase system designed to match the investigated reaction allows the following: (1) to obtain up to quantitative conversions and 100% selectivity toward the desired product; (2) to recover the product by simple phase separation; and (3) to preserve the catalyst activity for in situ recycles without loss of metal. Globally the investigated reaction proves the concept that a cradle-to-grave approach to the design of a catalytic reaction system can improve the global sustainability of a chemical transformation by improving efficiency, product isolation, and catalyst recycle.