Various nitrobenzaldehydes were simultaneously allylated and reduced using indium in the presence of HCl in aqueous media to give compounds having both functionality of homoallylic alcohol and aromatic amine. Sequential protection of the amino gro up and oxidation of the anilinyl homoallylic alcohol provided useful precursors of heterocyclic compounds such as dihydroindolones and dihydroquinolones, which could be efficiently synthesized through intramolecular cyclization reaction.