Matrix photolysis of N,N-dialkyldiazoacetamides 1a-d at 7-10 K results in either the formation of C-H insertion products (in case of N,N-dimethyl and N,N-diethyl diazoamides) or almost exclusive Wolff rearrangement to ketenes (in the case of the cyclic diazoamides N-(diazoacetyl)azetidine and N-(diazoacetyl)pyrrolidine). This can be ascribed to higher activation barriers for the approach of the singlet carbene p orbital in 5 (or of the diazo carbon in an excited state of 1) to the stronger and "tied back" nature of the C-H bonds in the cyclic substituents. In contrast, flash vacuum thermolysis (FVT) of diazoamides 1a-d, in which reactions of excited states are excluded, gives rise to clean C-H insertion with only minor Wolff rearrangement to ketenes.