Amidines undergo cyclocondensations with dimethyl acetylenedicarboxylate (DMAD) to give highly functionalized 5‐dialkylamino‐4‐pyrrolin‐3‐ones. The products are crystalline, highly colored compounds that are uniquely functionalized and represent advanced intermediates in the construction of several other heterocyles, in particular the biologically active tetramic acids. The synthetic transformations of these compounds to tetramic acids are also described.