The Knoevenagel reaction of fluorinated carbonyl compounds, 1,1,1-trifluoro-propanone-2-heptafluoro-butyraldehyde, 1,3-dichloro-1,1,3,3-tetrafluoro-acetone, tetradecafluoro-heptanone-4 and 2,2,2-trifluoro-acetophenone yielded fluorinated ${eta},{eta}$-dialkyl-${eta}$-hydroxy acids. Dehydration of the acids do not give the olefinic acid in the case of the perfluorinated system and gave a lactone. From the consideration of electronic and steric effects a mechanismic path of the reaction via a carbanion intermediate was proposed for the reaction. Preparation of related derivatives are also described.