A sodium ethoxide catalyzed reaction of N-substituted cyanoacetanilides 1a-f with diethyl 2-(ethoxymethylene)malonate 2 unexpectedly leads to the corresponding 2-amino-5-cyano-6-oxo-N,1-diaryl-1,6-dihydropyridine-3-carboxamides 3a-f, while the expected 5-cyano-2-hydroxy-6-oxo-1-aryl-1,6-dihydropyridine-3-carboxylates 4a-f were observed only as minor products.