Wet torrefaction (WT) proves to be a highly efficient pretreatment method for biomass waste, resulting in the production of hydrochar and valuable liquid products. In this study, a groundbreaking chemocatalytic approach is introduced, employing various zeolite catalysts (H-ZSM-5, H-Beta, H–Y, H-USY, and H-Mordenite) in a batch reactor under a nitrogen atmosphere. This method enables the simultaneous one-pot production of levulinic acid (LA) and/or bio-ethanol during the WT process of wood cellulose pulp residue (WCPR), ultimately yielding high-quality solid fuel. The WT process involves at 220 and 260 °C, H2O/WCPR = 10, and torrefaction time at 15, 30 and 60 min. The study identifies that at 220 °C and 15 min, as the optimal temperature and time, for bio-ethanol production, achieving a selectivity of 59.0 % with the H–Y catalyst, while the highest amount of bio-ethanol (75.6 %) was detected in presence of H-USY zeolite at 260 °C after 60 min. In addition, it was found the formation of relatively high amount of LA (62.0 %) at 220 °C after 60 min but using the H-ZSM-5 catalyst. For the WT + Mordenite sample (220 °C, 60 min), the highest carbon content of 71.5 % is achieved, resulting in the higher heating value (HHV) of 27.3 MJ/kg, an enhancement factor of 1.36, and carbon enrichment of 1.48, with the sequence of element removal during WT prioritized as DO > DH > DC and the weight loss of 68 %. Finally, the reaction mechanism was proposed to elucidate the formation of liquid products after WT of WCPR with participation of zeolite catalysts. The main pathway involving the direct conversion of cellulose into hydroxyacetone, followed by the subsequent generation of ethanol through the C–C cleavage of hydroxyacetone while LA formed via well-known route which includes cellulose hydrolysis to form glucose, conversion to 5-HMF and the subsequent transformation of 5-HMF into LA.