1, 3‐Butanediol was pyrolyzed at 425°C in a batch reactor as a model system for liquefaction of lignocellulosic materials such as wood. The observed gas and liquid products were consistent with fragmentation, dehydration, and condensation/polymerization reaction pathways. Reaction in supercritical water altered the selectivity of the reactions to give mainly propene and formaldehyde. Dehydration and the formation of two‐carbon products were suppressed by water. The conversion of 1, 3‐butanediol in dilute aqueous solutions increased three to four fold when the reaction density was increased by 33%. Trace oxygen was an important inhibitor, particularly in the dilute solution, but had only a minor effect on the reaction selectivity.