An unprecedented divergent synthesis of pyrazolo[1,2-a]pyrazolones and 2-acylindoles via Rh(III)-catalyzed [4 + 1] or [3 + 2] annulation of 1-phenylpyrazolidinones with alkynyl cyclobutanols through redox-neutral multiple bond activation by using -NH and -OH units as directing groups is presented. Notably, different annulation reactions were selectively achieved by simply adjusting the reaction conditions. With features such as simple procedures, easily accessible substrates, and high regio/chemoselectivity, these methods may find wide applications in related areas.