Analogues of the antibiotic SF-2312 with a 3-substituted 1-hydroxypyrrolidine moiety have been prepared from 1-benzyloxy-3-bromopyrrolidin-2,5-dione (1) through Michaelis–Arbusov reaction with various trialkyl phosphites and subsequent alkylation of ring position 3. Cleavage of phosphonic esters 3 by TMSBr afforded the corresponding phosphonic acids 7, which were treated with ethanolamine to give the monosalts 8. Finally, hydrogenolysis furnished 1-hydroxypyrrolidin-2,5-diones 9.