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Abstract Photoexcitation of cyclic ketones leads to the expulsion of carbon monoxide and a mixture of products derived from diradical intermediates. Here we show that synthetic utility of this process is improved if strained heterocyclic ketones are used. Photochemistry of 3‐oxetanone and N ‐Boc‐3‐azetidinone has not been previously described. Decarbonylation of these 4‐membered rings proceeds through a step‐wise Norrish type I cleavage of the C−C bond from the singlet excited state. Ylides derived from both compounds are high‐energy species that are kinetically stable long enough to undergo [3+2] cycloaddition with a variety of alkenes and produce substituted tetrahydrofurans and pyrrolidines. The reaction has a sufficiently wide scope to produce scaffolds that were either previously inaccessible or difficult to synthesize, thereby providing experimental access to new chemical space.