In this paper, it is reported that the efficient iodolactonization of 4,5-allenoic acid with I2 in cyclohexane in the presence or absence of K2CO3 afforded 5-(1'-iodo-1'(Z)-alkenyl)-4,5-dihydro-2(3H)-furanones highly stereoselectively. However, the reaction of axially optically active 4,5-allenoic acids (R)-(-)-5 a and (R)-(-)-5 b with I2 afforded the corresponding products with a serious loss of chirality. This problem was solved by conducting the iodolactonization with N-iodosuccinimide in CH2Cl2 in the presence of Cs2CO3; however, the Z/E selectivity is somewhat lower. The pure optically active Z products were prepared by subsequent kinetic resolution with Sonogashira coupling. The reaction of the substrates with a substituent at the 3-position of the starting 4,5-allenoic acids afforded the trans-4,5-disubstituted gamma-butyrolactones as the only products. The reaction of the 4,5-allenoic acids (S)-(+)-1 l, (R)-(-)-1 l, and (S)-(+)-1 m with a center chirality at the 3-position afforded the trans products with very high enantiopurity and up to 98:2 Z/E selectivity regardless of the axial chirality of the allene moiety.