Electron-deficient dimethyl (E)- and (Z)-2,3-dicyanobutenedioates (dimethyl dicyanofumarate and dicyanomaleate, respectively) react with diaryldiazomethanes at room temperature under spontaneous evolution of N2. The type of the products strongly depends on the structure of the diazo compound. Whereas diphenyldiazomethane and its bis(4-methoxy) derivative yield cyclopropanes, sterically crowded 5-diazo-5H-dibenzo[a,d]cycloheptane derivatives afford either the dimer of the carbene formed via N2 elimination or the adduct of the carbene onto the starting diazo compound. The course of the studied reactions is rationalized by stepwise mechanisms initiated by the formation of a C–N bond. A cascade of reactions leads to the corresponding cyclopropanes or to release of a carbene species. The formation of a pyrazole via [3+2]-cycloaddition (32CA) is observed only in reactions with (trimethyl- silyl)diazomethane, which behaves similar to the parent diazomethane. The proposed mechanisms were analyzed computationally using the DFT method.