The synthesis and reactivity of the novel cyclotetraphosphane [ClP(μ-PMes*)]2 were studied. The cyclophosphane proved to be a versatile reagent in phosphorus chemistry, since its Cl-functionalised P4 backbone could be used as a building block in a variety of reactions with Lewis acids, bases as well as reducing agents. The rearrangement of P−P bonds as well as a 1,2-Cl shift were identified as common reaction pathways to stabilise the products. All synthesised compounds were fully characterised, including experimental and theoretical methods.