New application of cadmium nitrate tetrahydrate as the catalyst for an efficient synthesis of 3,4- dihydropyrimidin-2( I H)-ones (DHPMs) from an aldehyde, µ-keto ester and urea both in refluxing ethanol and under solvent-free conditions is described. This method is applicable to various aldehydes and the yields are significantly higher comparing to the classical Biginelli reaction conditions.