The mechanism of the reaction of 1,3‐bis (amino)‐2‐phosphaallyl chlorides with hydrazine for the synthesis of 1H‐1,2,4‐diazaphospholes in CHCl3 solvent has been extensively investigated at the B3LYP/6‐311G (d, p) level. The reaction is initiated by the elimination of HCl and formation of a key intermediate A, then A subsequently undergoes H‐migration‐cyclization (A → B) and Me2NH elimination reactions (B → C) to afford carbene intermediate C, and C can transform to F along both single and triplet potential energy surfaces in three steps. H‐migration‐cyclization (A → B) step was identified as a proton‐coupled electron transfer (PCET) process, and singlet‐triplet PES crossing should be important in decomposition of C to D1 and D2. For R═Me, Ph and H, the rate control step should be the decomposition of C, while for R═tBu, the first Me2NH removal step is the rate control one. Theoretical results suggested that tBu is a preferable group than Ph, Me, and H in this reaction, which can be attributed to hyperconjugation effects of tBu, showing good agreement with experimental data.