Treatment of lithiated homoallylic phosphonates with dimethyl carbamyl chloride gave 2-amidophosphonate derivatives. A solution of 2-amidophosphonate in DME-H2O (2:1 vol) reacted with 2 eq. iodine at room temperature to give alpha-phosphono-gamma-iodoalkyl-gamma-butyrolactones in good yield, although the products are mixture. Wadsworth-Emmons reaction of alpha-phosphono-gamma-iodoalkyl-gamma-butyrolactones with aldehydes gave alpha-(alkyl)methylene-gamma-iodoalkyl-gamma-butyro-lactone derivatives.