The reaction of the pentaosmium cluster Os5C(CO)15 (1) with the diphosphine (Z)-Ph2PCHCHPPh2 (dppen) has been studied over the temperature range 328–358 K. Diphosphine addition to Os5C(CO)15 yields the arachno cluster Os5C(CO)15(κ1-Peq-dppen) (2) as the initially observed product. Cluster 2 transforms to the arachno cluster Os5C(CO)14(κ2-Peq,Peq-dppen) (3) upon CO loss and chelation of the pendent phosphine moiety. The loss of a second CO in cluster 3 is accompanied by polyhedral contraction to give the square pyramidal nido cluster Os5C(CO)13(κ2-Pa,Pb-dppen) (4). Clusters 2–4 were characterized in solution by IR and NMR spectroscopies, and the molecular structure of each new cluster was established by X-ray crystallography. The kinetics for the formation of 2 from 1 and dppen support a bimolecular process involving dppen addition to 1 analogous to the reported ligand additions to the family of M5C(CO)15 clusters (where M = Fe, Ru). Cluster 2 is labile and serves as the precursor to 3 + CO, which undergoes conversion to 4 + CO. The kinetics for these reactions have been explored, and these data, in conjunction with DFT calculations, have provided mechanistic insight into the stepwise conversion of 1 and dppen to 4 + 2CO.