[reaction: see text] Cerium(III) chloride heptahydrate and sodium iodide in boiling acetonitrile promote cyclization of 3-hydroxyalkenoic acids esters giving 5-substituted tetrahydrofuranacetic acid esters and 6-substituted tetrahydropyranacetic acid esters in fair to good yield and with complete retention of the absolute configuration of the starting 3-hydroxy ester.