Indole is a significant nitrogen-based heterocycle with particular importance in the synthesis of heterocyclic scaffolds. Indole based compounds have been recently attracting much attention due to their biological and pharmaceutical activities. 3-Substituted indoles such as cyanoacetyl indoles (CAIs) are nitrogen-heterocyclic compounds which are easily obtained from the reaction of indoles and cyanoacetic acid. They are versatile starting materials utilized for the construction of a wide variety of molecules containing indole moieties in organic synthesis. In this study, we provide an overview on the synthesis of 3-cyanoacetyl indoles (CAIs) and their recent applications in the multi-component reactions for the synthesis of various heterocyclic compounds such as pyranes, pyridines, dihydropyridines, pyrimidines, tetrahydropyrimidines, pyrazoles, pyrazolopyridines, pyrazolopyrimidines, pyridopyrimidines, tetrazolopyrimidines, triazolopyrimidines, furans, dihydrofurans, coumarins, pyrimido naphthyridines, chromenes, thiazoles, pyrimidoindazoles, pyrazoloquinolines, isoxazolopyridines, and carbazoles and their biological activities during the period of 2013 to 2022.