Telomerization of butadiene with water into 2,7-octadien-1-ol using a palladium-hydrosoluble phosphine system was investigated. The reaction was carried out without solvent in the presence of carbon dioxide and a nonionic surfactant. Promoted effect of neutral surfactant appeared above the critical micelle concentration and the conversion and the selectivity depended on the structure of nonionic surfactant hydrophilic part. The role of the nonionic surfactant is discussed.