Cis-2-butene-1,4-diol and 1,4-butanediol are crucial precursors in producing bioplastics and biodegradable plastics. Moreover, cis-2-butene-1,4-diol is used in the production of vitamins A and B6, fungicides and insecticides. On an industrial scale, they are produced by hydrogenation of 2-butyne-1,4-diol with Ni Raney as catalyst at > 160 °C and > 15 MPa. Herein, the effect of mesoporous carbon, iron loading (2, 6, 10 and 14 wt%), and metal oxidation state on the activity and selectivity of iron catalysts in the liquid phase continuous flow 2-butyne-1,4-diol hydrogenation at mild conditions (at temperature range 10–65 °C and pressure range 1–20 bar) was performed. Catalytic investigations supported by statistical modeling and physicochemical characterization (TPR, H2-TPD, physisorption, TEM, XPS, and Mössbauer spectroscopy), showed that the activity of the Fe/C can be determined by the presence of functional groups in mesoporous support which are responsible for high metal dispersion and strong metal-support interaction, which boosts the catalytic activity of iron catalysts. Additionally, the formation of metastable iron carbides which are active in hydrogenation cannot be excluded. All of the catalysts showed 100% selectivity toward cis-2-butene-1,4-diol at the lowest temperature. However, the best compromise between selectivity and activity (TOF=336 h−1) was achieved with 2 wt% Fe at 1 bar and 25 °C.