Rhodium‐catalyzed cyclization of N‐(2,3,4,5,6‐pentafluoro‐benzyloxy) diazo amides leading to the corresponding γ‐lactams is described. The cyclization is based on the intramolecular catalytic insertion into the C–H bond. Fourteen lactams were obtained with up to 91 % yield and 88 % ee. Gabapentin hydrochloride, a GABA analog, was also synthesized by this method, which shows that deprotection of the 2,3,4,5,6‐pentafluorobenzyloxy group is possible.