A simple and efficient KI promoted sulfur activation‐insertion/de‐nitration strategy has been developed for the synthesis of β‐carboline C1 tethered 2‐acylbenzothiophenes via one‐pot assembly of 1‐acetyl β‐carbolines (an alkaloid based scaffold), 2‐nirobenzaldehydes and elemental sulfur. This expeditious reaction proceeds through the formation of β‐carboline linked nitro‐chalcones followed by embodiment of elemental sulfur to generate the multifunctional β‐carboline linked benzothiophene derivatives. The highlighted features of this efficient methodology are transition metal‐free conditions, use of inexpensive and non‐toxic catalyst, easy procedure, short reaction time, and broad substrate scope with good yields. The scope of this protocol has been extended for the synthesis of a range of novel compounds with significant diversity.