The regioselectivity of the 3‐hydroxyisoxazole‐5‐ester 1 is studied with respect to O‐ versus N‐alkylation. 3‐O‐Alkyl products 2 are highly favoured with benzyl, benzhydryl, and allyl bromide (≥ 91:9), in contrast to known uses of 5‐alkyl‐3‐hydroxyisoxazoles or when methylation with diazomethane (or methyl iodide) is effected. Methoxymethylation leads to the N‐substituted isoxazolinone 3e only. On reduction with DIBAH, the esters 2 afford 3‐O‐protected 3‐hydroxyisoxazole‐5‐carbaldehydes 4 (75−98%). For removal of the benzyl protecting groups, three variations (HBr/HOAc, H2‐Pd/BaSO4, NBS/AIBN) were found useful with 5‐ester, 5‐formyl, and 5‐hydroxymethyl derivatives. The free 3‐hydroxy‐5‐carbaldehyde 9, the putative toxic metabolite of the GABA agonist muscimol, is prepared accordingly. The O‐protected 3‐hydroxyisoxazole‐5‐carbaldehydes 4 constitute versatile intermediates in various routes to analogues of CNS‐active amino acids and can now be obtained in a highly efficient manner.