We report herein a convenient route to the synthesis of aryl‐substituted γ‐lactones bearing an α‐phosphorus ylide moiety through the assembly of dimethyl acetylenedicarboxylate (DMAD), electron‐deficient aldehydes, and triaryl‐ or trialkylphosphanes in moderate to good yields. The formation of γ‐lactones is highly dependent on the reaction time, the phosphane nucleophile, and the molar ratio of DMAD, aldehyde, and phosphane. We found that reactions with a DMAD/aldehyde/tri‐p‐tolylphosphane molar ratio of 3:1:6 and more electron‐deficient aldehydes, such as 4‐nitrobenzaldehyde and 4‐chloro‐3‐nitrobenzaldehyde, gave good yields. The isolated ylides reacted with aldehydes as Wittig reagents to give olefins in moderate yields.