Commerciallyavailable and inexpensive magnesium monoperphthalate (MMPP) was found to be an effective oxidant for the first direct Rubottom hydroxylation of α‐substituted malonates, β‐ketoesters, and β‐ketoamides, when working in ethanol at room temperature and using NaHCO3 as basic additive. The feasibility of gram scale oxidation was also demonstrated.