A facile and efficient InCl catalyzed one-pot synthesis of highly substituted pyrroles has been developed via a tandem propargylation/cycloisomerization reaction of α-oxoketene-N,S-acetals with propargyl alcohols. Notably, in the presence of Bronsted acid p-TSA·HO, the reaction afforded the hydrolyzed product propargylated-1,3-dicarbonyl compounds, which upon treatment with CsCO underwent regioselective intramolecular cyclization furnishing tetrasubstituted furan derivatives.