A novel and efficient AgNO3-facilitated oxidative C–C σ-bond difunctionalization of alkylidenecyclopropanes with α-ketoacids for preparing 2-acyl-substituted 3,4-dihydronaphthalenes is developed. This radical acylation/arylation transformation proceeds via decarboxylation of the α-ketoacid, acylation of the carbon–carbon double bond, cleavage of the carbon–carbon σ-bond, and cyclization with a connected