Provided is a simple and industrially advantageous method for producing 2,7-octadien-1-ol, in which an expensive palladium catalyst is recovered in high efficiency and the reaction rate per atom of palladium is enhanced. Specifically, provided is a method for producing 2,7-octadien-1-ol by subjecting butadiene and water to a telomerization in the presence of a palladium catalyst containing a water-soluble triarylphosphine having two or more sulfonate groups in the molecule and a palladium compound, a tertiary amine, and carbon dioxide, including a step of mixing the telomerization solution obtained by the telomerization with an organic solvent having a dielectric constant at 25° C. of 2 to 18, followed by carrying out phase separation in the presence of carbon dioxide, thereby obtaining 2,7-octadien-1-ol from an organic phase while recovering an aqueous phase including the palladium catalyst. By this production method, the selectivity for 2,7-octadien-1-ol is enhanced.