Diphenyl (2,3-dihydro-2-thioxo-3-benzoxazolyl)phosphonate (1) prepared from 2-benzoxazolethiol and diphenyl phosphorochloridate was proved to be a very useful condensing agent. A variety of amides, esters, and dipeptides were obtained in excellent yields. Furthermore, this reagent was successfully applied to the synthesis of beta-lactams from beta-amino acids.