A highly enantioselective synthesis of functionalized cyclopentanoids by a formal asymmetric (4+1) annulation strategy was developed. The methodology consists of a stereoselective cyclopropanation reaction between chiral sulfur ylides and 1,3‐dienes followed by a, in situ, stereospecific MgI2‐catalyzed rearrangement of vinylcyclopropanes. This method is distinguished by a remarkable compatibility with