A novel tandem Michael–Favorskii‐type reaction is described. Treatment of active methylene carbanions, prepared by the reaction of NaH and active methylene compounds, with (E)‐β‐styrylselenonium triflate in DMF at 70 °C for 3 h gave cyclopropane derivatives bearing 1,2‐dicarbonyl groups in moderate to good yields. On the other hand, the carbanions derived from malonates reacted with the selenonium salt to afford 1,1‐dicarbonylcyclopropane compounds in good yields. (© Wiley‐VCH Verlag GmbH & Co. KGaA, 69451 Weinheim, Germany, 2005)