Bis(phosphonio)benzo[c]phospholides (isophosphindolides) 1a,b have been found to react with magnesium or alkali metal naphthalenides MC10H8 (M = Li, Na, K) with reduction of one or both of the phosphonio groups. The main products are the mono‐ or bis(phosphanyl)‐substituted heterocycles 2, 3, 6, 7, which have been characterized by in situ NMR studies and in some cases isolated. Subsequent reaction of 2 with excess [Ni(CO)4] gave the complex 4, which has been characterized by X‐ray diffractometry. Reactions of 1a with alkali metals followed a more complicated course and gave a mixture of 2, 3, and the substitution product 8, which was further reduced to the phosphanido‐substituted benzo[c]phospholide 9. The latter could be formed selectively by first converting 1a into 8 by treatment with PhNa and then treating this with lithium. NMR data of the phosphane‐substituted benzo[c]phospholides and the structural features of 4 are discussed.