Different outcomes were generated under different conditions for the tandem reactions of N'-(2-alkynylbenzylidene)hydrazides with dimethyl acetylenedicarboxylate (DMAD) catalyzed by silver triflate or in the presence of electrophiles. The unexpected isoquinoline-based azomethine ylides were obtained when the reaction was catalyzed by silver triflate or in the presence of bromine, while the fused 1,2-dihydroisoquinolines were afforded when iodine was employed in the above tandem reactions.