Enantioselective tandem formation and [2,3]‐sigmatropic rearrangement of cyclic propargylic oxonium ylides catalyzed by dirhodium(II) tetrakis[<i>N</i>‐phthaloyl‐(<i>S</i>)‐<i>tert</i>‐leucinate]
rearrangement of propargylic oxonium ylides generated by catalytic diazo decomposition. Catalysis of α-diazo-ß-keto esters 4a—g using dirhodium(II) tetrakis[N-phthaloyl-(S)-tert-leucinate] in toluene has led to the virtually exclusive formation of benzofuran-3-ones bearing an allenic group with up to 79% ee.