Abstract A highly regioselective synthesis of sulfone‐containing spiro[4.4]nonanes has been achieved by the reaction of 2‐phenacyl‐1,3‐indandiones with 3‐(phenylsulfonyl)propiolates at ambient temperature. Furthermore, the synthesized compounds were transformed into pentafulvene dyes via unprecedented C−C bond rearrangement and their photophysical properties are also outlined in this article.