The invention relates to a method for producing caprolactam by methylbenzene, which comprises the following processes of oxidation, esterification, hydrogenation, distillation, amidation, hydrolyzing and refining, wherein in the oxidation process, the methylbenzene is completely converted into benzoic acid by adopting an ester solvent; in the esterification process, the benzoic acid dissolved in ester reacts with alcohol to form corresponding benzoate; in the hydrogenation reaction, a benzene ring of the benzoate is hydrogenated till saturation to form cyclohexanecarboxylate in a fixed bed reactor, and the cyclohexanecarboxylate enters the amidation process; and in the amidation process, the cyclohexanecarboxylate reacts with nitrosyl sulfuric acid, the reaction product is subjected to hydrolyzing rearrangement in the sulfuric acid to form the caprolactam by refining. In the method, the conventional rectification of the benzoic acid is changed into the rectification of the benzoate, agranular catalyst replaces the original powder palladium-carbon catalyst, the processes of catalyst sedimentation, centrifugal separation and the like are reduced, the generation of ammonium sulfate is reduced, and dimethyl sulfate serving as a by-product is produced simultaneously.