Three-component condensation of anisole with isobutyraldehyde and substituted benzyl cyanides gives 1-benzyl-3,3-dimethyl-2-azaspiro[4.5]deca-6,9-dien-8-ones which undergo dienone-phenol rearrangement during the reaction. Analogous condensation of 1-methoxynaphthalene leads to the formation of 2'-benzyl-5',5'-dimethyl-4',5'-dihydro-4H-spiro[naphthalene-1,3'-pyrrol]-4-ones.