The Rh (I1)-catalyzed reaction of a-diazoacetophenone in the presence of 24methylthio) pyridine and dimethyl acetylenedicarboxylate gave 3-benzoyl-1, 2-dicarbomethoxy-3, 5- dihydro-5-(methylt~ o)-indolizine. The formation of the cycloadduct proceeds via a pyridinium ylide formed by attack of the nitrogen lone pair on the electrophilic keto carbenoid. A related cyclization occurred using 1-diazo-3-[(2-pyridyl) thiol-2-propanone. ...