The multi‐10.000 tons scale manufactured chemical ε‐caprolactone attracts high industrial interest due to its favorable biodegradability properties. However, besides being of petrochemical origin yet, its industrial production has a conceptual limitation that is the difficult extraction of this highly water‐soluble monomer from the water phase resulting from the aqueous solution of H2O2 applied as reagent. In this contribution, we report a chemoenzymatic cascade starting from bio‐based phenol, which makes use of O2 instead of H2O2 and runs in pure organic medium, thus requiring only simply decantation and distillation as work‐up. In a first step, phenol is hydrogenated quantitatively to cyclohexanol under solvent‐free conditions with a Ru‐catalyst. After simple removal of the heterogenous catalyst, cyclohexanol is converted to ε‐caprolactone in a biocatalytic double oxidation with very high yields just requiring O2 as reagent. This biocatalytic process proceeds in pure organic medium, thus avoiding tedious extraction to isolate the highly water‐soluble ε‐caprolactone and enabling a dramatically simplified work‐up by only centrifugal separation of lyophilized whole cells and solvent removal. This oxidation is accomplished using a tailor‐made recombinant whole‐cell catalyst containing an alcohol dehydrogenase and a cyclohexanone monooxygenase mutant.