Reaction of acetoacetic acid N-arylamides with ninhydrin at boiling in ethanol in the presence of iron(III) chloride afforded 1-aryl-3a,8b-dihydroxy-3-(1-hydroxyethylidene)-1,3,3a,8b-tetrahydroindeno[1,2-b]-pyrrole-2,4-diones. The structure of compounds was confirmed by IR, ¹H NMR, and mass spectra and X-ray diffraction (XRD) analysis.