A method for making an alkyl 3-hydroxybutyrate is provided. The method can include reacting an alkyl alcohol with diketene to form an alkyl acetoacetate and then hydrogenating the alkyl acetoacetate to form the alkyl 3-hydroxybutyrate. The method of the present invention may also include separating one or more impurities an alkyl acetoacetate stream and subjecting the purified acetoacetate mixture to hydrogenation to form the alkyl 3-hydroxybutyrate. Methods of the present invention can be carried out on a lab, pilot, or commercial scale.