A new cobalt(II)-catalyzed decarboxylative C–H activation/annulation of benzamides and alkynyl carboxylic acids has been described. Alkynyl carboxylic acids were first employed as the coupling partners using inexpensive Co(OAc)2·4H2O as the catalyst. This method enables a switchable cyclization to isoquinolones and isoindolinones with excellent selectivity. Moreover, a catalytic amount of Ag2O was adopted as co-catalyst and O2 (from air) as a terminal oxidant for the preparation of isoquinolones.