During the exploration of arylazides reactions with alkyl 3‐substituted‐3‐oxopropanoates under the Dimroth reaction conditions (MeONa‐MeOH) azide attack on ester group versus keto was found out in few examples yielding stable 3‐alkyl‐2‐diazo‐3‐oxo‐N‐(aryl)propanamides instead of obvious target 1‐aryl‐5‐alkyl‐1H‐1,2,3‐triazole‐4‐carboxylic acids. The formation of diazocompounds was observed in case of 3‐(4,4‐diethoxymethyl)‐, isopropyl‐, cyclopropyl‐3‐oxopropanoate in the reaction with arylazides, especially, those containing electro‐withdrawing substituents. Influence of the base‐solvent system on diazo products yields was investigated and mechanistic insights of Dimroth reaction were discussed.