N -isopropenylbenzimidazolone undergoes a smooth reaction with triphenylphosphine and dialkyl acetylenedicarboxylates to produce highly functionalized salt-free phosphorus ylides in good yields. These stabilized phosphorus ylides exist as a mixture of two geometrical isomers as a result of restricted rotation around the carbon-carbon partial double bond resulting from conjugation of the ylide moiety with the adjacent carbonyl group. These ylides are converted to dialkyl 2-(1-isopropenyl-1H-benzimidazol-2-yl)-but-2-enedioates in boiling toluene.