The synthesis of heretofore unknown γ-spirobutenolides has been achieved via an m-CPBA-mediated oxidation of βfuryl amides. The reaction employs a tethered amide, ostensibly a poorly reactive carbonyl, as a nontraditional nucleophile resulting in spirolactone formation and concurrent amide cleavage. The transformation exhibits functional group tolerance and compatibility with complex compounds. In situ 1 H NMR spectroscopic studies reveal the identities of key intermediates in the oxidation− spirolactonization−oxidation cascade, suggesting a plausible mechanistic pathway. The distinct diastereofaces of the electrophilic butenolide product may be used for diastereoselective cycloaddition and conjugate addition reactions.