Asymmetric Baeyer–Villiger reaction of symmetrical cyclobutanones 1a− j with urea− hydrogen peroxide (UHP) can be catalyzed by a complex of Pd (II) and the new terpene- derived P, N-ligand 7. The resulting lactones 2a− j were obtained in high yields and with good enantioselectivity (≤ 81% ee).