o‐Aroylarylacetone type 1,5‐diketone derivatives (5, 6) were synthesised from arylacetones (1) protected as 1,3‐dioxolanes (4) through directed ortho lithiation followed by acylation with aroyl chlorides. 8,9‐Dialkoxy‐2,3‐benzodiazepines 9 were obtained by cyclisation of diketones 6 with hydrazine. The reaction of diketones 6 with ammonia gave 7,8‐dialkoxyisoquinolines 11. Reaction of ketals 5 with hydrazine hydrochloride and hydroxylamine hydrochloride afforded N‐amino‐7,8‐dialkoxyisoquinolinium chlorides (10) and 7,8‐dialkoxyisoquinolinium oxides (12), respectively.