Sonogashira alkynylation of methyl 2-iodobenzoate with terminal acetylenes gave a series of methyl 2-(alk-1-yn-1-yl)benzoates which reacted with hydroxylamine in boiling methanol to produce five- or six-membered N-hydroxy lactams, 3-R-methylidene-2-hydroxy-2,3-dihydroisoindol-1-ones or 3-R-isoquinolin-1(2 H)-ones, depending on the acetylenic substituent nature.