A novel approach to the synthesis of indoline derivatives is presented. The key cyclization step features the phenyliodine(III) bis(trifluoroacetate)- (PIFA-) mediated formation of a N-acylnitrenium ion and its succeeding intramolecular trapping by the olefin fragment. In addition, difunctionalization of the alkene moiety is achieved since the in situ generation of an additional hydroxy group at the