Efficient Mukaiyama-type aldol reaction of 1, 2-bis(trimethylsiloxy)cyclobutene with aromatic aldehydes catalyzed by MgI2 is reported. The resulting succinoylation product of aldehyde was converted into the synthetic useful g-lactone and butenolide derivatives. Efficient Mukaiyama-type aldol reaction of 1, 2-bis (trimethylsiloxy) cyclobutene with aromatic aldehydes catalyzed by MgI2 is reported. The resulting succinoylation product of aldehyde was converted into the synthetic useful g-lactone and butenolide derivatives.