New five‐membered oxazol‐2(3H)‐one heterocycles and 1,2‐diaroylhydrazines are obtained in good yield when 1,2‐dicarbonyl substrates are reduced at the cathode in N‐methyl formamide/LiClO4 as solvent‐supporting‐electrolyte system, and in the presence of arenediazonium salts. Electrochemical pathways are presented to involve a) cascade reactions: hydrogen atom abstraction from a solvent molecule, radical coupling reaction with substrate intermediate, and intramolecular migration of a methylamino group, to provide oxazolones or b) surprising C−C bond cleavage in the substrate radical anion, assisted by a diazonium salt, that evolves to disubstituted arylhydrazides.