Phenylcyclobutenediones are easily obtainable and very stable. Depending on the nature of the substituent R in position 3, they may be formally regarded as vinylogous carboxylic acid derivatives (Rhalogen, OCH3, OH, SH) or as α,β‐unsaturated diketo compounds (RH, alkyl, aryl). Their behavior in reactions justifies this approach. Ring contraction, ring expansion, and ring cleavage reactions are described.