Conversion of levulinic acid and its esters into versatile γ-valerolactone (GVL) is a pivotal and challenging step in biorefineries, limited by high catalyst cost, the use of hydrogen atmosphere, or tedious catalyst preparation and recycling process. Here we have successfully synthesized a ternary magnetic nanoparticle catalyst (Al2O3-ZrO2/Fe3O4(5)), over which biomass-derived methyl levulinate (ML) can be quantitively converted to GVL with an extremely high selectivity of > 99% and yield of ~98% in the absence of molecular hydrogen. Al2O3-ZrO2/Fe3O4(5) incorporates simultaneously inexpensive alumina and zirconia onto magnetite support by a facile coprecipitation method, giving rise to a core-shell structure, well-distributed acid-base sites, and strong magnetism, as evidenced by the X-ray diffraction (XRD), X-ray photoelectron spectroscopy (XPS), scanning electron microscopy (SEM), transmission electron microscopy (TEM), high-angle annular dark-field scanning-TEM (HAADF-STEM), SEM-energy dispersive X-ray spectroscopy (SEM-EDX), temperature-programmed desorption of ammonia (NH3-TPD), temperature-programmed desorption of carbon dioxide (CO2-TPD), pyridine-adsorption infrared spectra (Py-IR), and vibrating sample magnetometry (VSM). Such characteristics enable it to be highly active and easily recycled by a magnet for at least five cycles with a slight loss of its catalytic activity, avoiding a time-consuming and energy-intensive reactivation process. It is found that there was a synergistic effect among the metal oxides, and the high efficiency and selectivity originating from such synergism are evidenced by kinetic studies. Furthermore, a reaction mechanism regarding the hydrogenation of ML to GVL is proposed by these findings, coupled with gas chromatography-mass spectrometry (GC-MS) analysis. Accordingly, this readily synthesized and recovered magnetic nanocatalyst for conversion of biomass-derived ML into GVL can provide an eco-friendly and safe way for biomass valorization.