Vinyl azides have become versatile building blocks in organic synthesis. Most of their transformations usually undergo a fast release of molecular N2 to generate 2H‐aziridine and vinyl nitrene intermediates. However, retaining the azides group in the final product is quite rare and challenging. Herein, we design and validate a new alkene difunctionalization strategy that involves an oxidative fluorocyclization of vinyl azides for the synthesis of a variety of 5‐azido,5‐fluoro‐1,3‐oxolan‐2‐ones with broad substrate scope and good functional group tolerance in good to excellent yields. The in situ removal of a leaving group in this difunctionalization reaction is a key to retain azide moiety in the final product.