1‐(1,3‐Dithian‐2‐yl)propargylamines undergo iodo‐cylization regioselectively to afford tetrasubstituted 3‐amino‐4‐iodothiophenes in 30–87 % yields by iodide induced cleavage of dithiane ring in a bicyclic sulfonium intermediate. A mechanism for this unprecedented transformation was proposed and tentatively supported by the isolation of an intermediate structure. 1‐(1,3‐Dithian‐2‐yl)propargylamines were prepared in 30–94 % yields by Au‐catalyzed one‐pot, three‐component reaction of 1,3‐dithiane‐2‐carbaldehydes, amines, and alkynes so called A3‐coupling reaction.