An environment friendly method for the synthesis of 2-oxo/thioxooctahydroquinazolin-5-one derivatives has been devised using Ceric ammonium nitrate (CAN) as catalyst and polyethylene glycol (PEG) as solvent. The cytotoxic effect of these compounds was studied on U87 human glioma cells, compounds 4c, 4d and 4e are found to exhibit excellent activity at a concentration as low as 0.06 μg/ml.