The first computational study of the rearrangement reactions of oxiranes initiated by lithium dialkylamides is presented. Aside from the well-known carbenoid insertion pathways, both β-elimination and α-lithiation have been suggested as the exclusive mechanism by which oxiranes react in the presence of organolithium bases. The products of the former are allyl alcohols (and, in some cases, dienes) and are ketones in the case of the latter. The computational studies reported in this work indicate that both mechanisms could be simultaneously operational. In particular, our work shows that the allyl alcohols from β-elimination are unlikely to undergo 1,3-hydrogen transfer to the vinyl alcohols and thus to the ketones, suggesting that ketones are formed through the opening of the oxirane ring after α-substitution. Elimination of LiOH from the lithiated allyl alcohol is found to result in the diene product. Low activation barriers for β-elimination are offered as the explanation for the few special cases where the allyl alcohol is the dominant or exclusive product. These findings are consistent with the product distributions observed in several experiments.