Abstract A copper(I)/phosphine system that homogeneously catalyses the alkynylation of formaldehyde with acetylene or terminal alkynes is reported. Using acetylene at atmospheric pressure, the catalyst consisting of <1 mol% copper(I) phenylacetylide and a trialkyl bisphosphine ligand shows a high selectivity towards the formation of propargyl alcohol rather than 1,4‐butynediol, which is not reported for common heterogeneous copper acetylide catalysts. The biphasic water/toluene reaction mixture allows the separation of targeted products with the aqueous layer and catalyst recycling via the organic layer. magnified image