The 1,3-dipolar cycloaddition of nitrilimine, generated in situ from N′-phenylbenzohydrazonoyl chloride and triethylamine, to 7-arylmethylidene-6,7-dihydroindolizin-8(5H)-one afforded novel 4′-aryl-2′,5′-diphenyl-2′,4′,5,6-tetrahydro-8H-spiro(indolazine-7,3′-pyrazol)-8-ones in moderate yields. The structures of all the products were characterised thoroughly by NMR, infrared spectroscopy and HRMS. The structure and stereochemistry was confirmed by X-ray diffraction analysis.