Addition of indoles and pyrroles to activated quinolines and isoquinolines is achieved using 10 mol% of indium(III) chloride as a catalyst to produce 2-(1H -indol-3-yl)-1,2 -dihydroquinolines and l-(1H -indol-3-yl)-1,2 -dihydroisoquinolines in excellent yields with high selectivity. This method is very useful for the functionalization of both indoles and quinolines in a one-pot operation.