An efficient diastereoselective multi‐step synthesis of bicyclic 1β‐methylcarbapenem antibiotic precursors has been developed, starting from the commercially available 4‐acetoxyazetidin‐2‐one 4. Chiral ruthenium catalysts are used in the hydrogenation step to control the β‐stereochemistry at the 1‐position, and a π‐allylpalladium ring‐closure strategy is used to form the functionalized carbapenem skeleton.