Condensations of stabilized phosphorane 1 with 3-substituted phthalic anhydrides were investigated. The importance of various effects influencing regio-and stereoselectivity of these reactions is discussed. It is proposed that the oxygen atom on the substituents in position 3 can act as aLewis base toward the electron-deficient phosphorus of the ylid. The resulting complexation stabilizes the transition state for the reaction at the ortho carbonyl group, thus offsetting the usual steric and "push effects, which favour attack at the meta carbonyl function.