Hydroquinone combined with FeCl3 can reduce the methanolysis time of N‐vinylcarbazole in CH3OH from 9 h to 1 h, but the addition of hydroquinone to Fe(NO3)3 will slow the methanolysis and quench the cyclobutanation process. The addition of H2O2 successfully made the FeCl3 catalytic cyclobutanization of N‐vinylcarbazole in the yield from zero up to 33%. Copyright © 2011 John Wiley & Sons, Ltd.