Abstractα‐Hydroxy amides are an essential class of compounds found in natural products and bioactive molecules of drug candidates. Herein we report a facile and direct approach to these compounds through oxalic acid decarbonylation/decarboxylation during the Passerini three‐component reaction (P‐3CR) under solvent‐free conditions with microwave heating. This very convenient methodology provides the title compounds through a possible concerted intramolecular decarbonylation/decarboxylation from the α‐acyloxy amide intermediate.