The mechanisms of CC activation of 1-Benzylcyclopropan-1-ol to produce 1,6-diketone have been investigated by density functional theory (DFT) calculations. The catalyst [Cp*RhCl 2 ] 2 and additive Ag 2 CO 3 play an important role in controlling the selectivity. By employing [Cp*RhCl 2 ] 2 as catalyst and Ag 2 CO 3 as additive, the product is 1,6-diketone, whereas the β-hydride elimination product could not be obtained. The product would become monoketone in the absence of [Cp*RhCl 2 ] 2. In addition, the combination of catalyst [Cp*RhCl 2 ] 2 and additive AgOAc would also lead to monoketone. The observed selectivity could be attributed to the electronic effect.