Treatment of O‐(β‐arylethyl) arylimidates with 1,3‐diiodo‐5,5‐dimethylhydantoin (DIH) under irradiation with a tungsten lamp in 1,2‐dichloroethane gave the corresponding 2,4‐diaryl‐5‐iodoxazoles and 2,4‐diaryloxazoles in good to moderate yields, respectively, depending on the aryl group. It was proposed that the reactions proceeded through the formation of N‐iodoimidates by the reaction of O‐(β‐arylethyl) arylimidates with DIH, followed by the formation of iminyl radicals via homolytic N–I bond cleavage, the 1,5‐H shift by the iminyl radicals, the C–I bond formation of the formed carbon‐centered radicals with iodine, the nucleophilic cyclization by the imino groups to form 2,4‐diaryloxazolines, the oxidation of the formed 2,4‐diaryloxazolines to 2,4‐diaryloxazoles, and the iodination of the formed 2,4‐diaryloxazoles to 2,4‐diaryl‐5‐iodoxazoles with DIH.