The Rh2(OAc)4‐catalyzed reaction of methyl aryldiazoacetates with thioacetic S‐acid gives exclusively the S−H insertion products in high yields, while the corresponding reaction mediated by BF3·OEt2 gives O‐esters. The mechanism of the reaction is discussed. (© Wiley‐VCH Verlag GmbH & Co. KGaA, 69451 Weinheim, Germany, 2003