The domino reaction of (E)-2-amino-N′-(1-arylethylidene)benzohydrazide and triethyl orthoformate in ionic liquids catalyzed by 10 mol % iodine gave 3a,4-dihydro-2-arylpyrazolo[5,1-b]quinazolin-9(3H)-one derivatives unexpectedly. In the presence of K2S2O8, it could be oxidized to aromatized products in good yields.