The reaction of the 4‐phosphorylated allenecarboxylates with different electrophilic reagents such as sulfuryl chloride, bromine, benzenesulfanyl, and benzeneselanyl chlorides takes place with a 5‐endo‐trig cyclization or 2,3‐addition reaction depending on the kind of the substituents in the phosphoryl group. Treatment of the 4‐(dimethoxyphosphopyl)‐allenoates with electrophiles gives a mixture of 2,5‐dihydro‐1,2‐oxaphospholes and furan‐2(5H)‐ones in the ratio of about 1.7:1 as a result of the neighboring group participation of phosphonate and carboxylate groups in the cyclization. On the other hand, (3E)‐4‐(diphenylphosphoryl)‐alk‐3‐enoates were prepared, in moderate yields, by chemo‐, regio, and stereoselective electrophilic addition to the C2C3‐double bond in the allenoate moiety. A possible mechanism involving cyclization and addition reactions of the 4‐phosphorylated allenecarboxylates was proposed.