An efficient method for the highly regio‐ and stereoselective synthesis of 1,2,3‐trisubstituted indanes from diarylmethanols and allylamides through iron(III) chloride hexahydrate‐catalyzed intermolecular [3+2] cycloaddition reaction is reported. A range of 1,2,3‐trisubstituted indanes were prepared in good to excellent yields with excellent stereoselectivities for various combinations of diarylmethanols