An unusual domino reaction where the same furan α‐carbon atom reacts initially as a nucleophile and then as an electrophile is reported. In the presence of acid, N‐tosylfurfurylamines react with 2‐(tosylamino)benzyl alcohols to afford 2‐(2‐acylvinyl)indoles. The reaction proceeds by Friedel–Crafts alkylation at the C(2) atom of furan followed by acid‐catalyzed intramolecular nucleophilic attack of the ortho‐amino group onto the same carbon atom. The replacement of the tosylamino leaving group by phthalimide enables generation of a different type of indole yet allows the ambiphilic nature of C(2) to be retained. Both types of indoles were obtained when N‐furfurylbenzamides were employed.