In this study, visible‐light‐induced [3+2] cyclization reactions of hydrazones with hypervalent iodine diazo reagents as diazomethyl radical precursors are reported. Mild reaction conditions, a broad substrate scope, and excellent functional group compatibility were observed. Furthermore, the synthetic utility was demonstrated by gram‐scale synthesis and elaboration to several value‐added products. This protocol broadens the scope of diazo chemistry, and is applicable to the late‐stage functionalization of natural products.