An efficient approach for the preparation of novel CF3-substituted cyclic α-amino acid derivatives fused with cyclobutene ring has been developed. The method is based on intramolecular thermal [2+2] cycloaddition of amino acid containing allenynes with internal triple bond obtained by successive [2,3]-sigmatropic rearrangement of propargyl-containing nitrogen CF3-ylides and Sonogashira derivatization