Alum (KAl(SO4)2·12H2O) performs as a novel catalyst for the synthesis of 2-arylbenzothiazoles and 2-arylbenzoxazole from o-aminothiophenol and o-aminophenol with various substituted aldehydes in good to excellent isolated yields (85–95%) using water as a solvent at ambient temperature. Several solvents were examined for this reaction; however, in terms of reaction yield and time, water was found to be the optimum solvent. The remarkable advantages offered by this method are an inexpensive and easily available catalyst, a simple procedure, mild conditions, much faster (60–90 min) reactions, and good to excellent yields of products.