A range of arylmethyl‐substituted pyrrolidines and tetrahydrofurans were produced by FeCl₂‐catalyzed tandem cyclization and cross‐coupling reactions of alkyl iodides and aryl Grignard reagents. The substituents on alkenes had a profound effect on the progress of the tandem reactions, with di‐ and tri‐substituted alkenes affording cyclized pyrrolidines. Several experimental results, such as cyclopropyl ring opening, the stereochemical outcome of the reaction with a secondary iodide substrate, and intermediate identification with 2,2,6,6‐tetramethylpiperidine‐1‐oxyl (TEMPO), support the conclusion that a radical process is involved in this catalytic system. Moreover, deuterium labeling experiments indicated that radical disproportionation could occur in the termination reactions of the cyclized alkyl radical species.