Selective photocatalytic reduction of CO2 into methanol, using 355 nm UV laser as a light source, has been studied for the first time. An alternate route for the photocatalytic reduction of CO2 based on thermodynamic viability of the process, has been suggested. It was observed that the formation of methanol from CO2 is a reversible process and the methanol produced during the photocatalytic process degrades to generate hydrogen and CO2 again; which hampers the over all conversion rate. The measurements on pH and hydrogen production during the course of photocatalytic reduction were valuable in explaining the conversion process. (C) 2004 Elsevier Ltd. All rights reserved.