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The multicomponent assembly of a nitrile‐based directing group in a set of arylacetic acids under solvent‐free mechanochemical conditions using the Passerini 3‐CR and the subsequent Pd(II)‐mediated meta‐C(sp2)−H bond olefination process has been achieved. The protocol demonstrated that removing the DG under mild conditions from the activated Passerini adducts affords a novel N‐(tert‐butyl)‐2‐(2‐cyanophenyl)‐2‐hydroxyacetamide,...