AbstractAn efficient, unprecedented, catalyst‐free, and rapid synthesis of substituted 3‐hydroxy‐2‐oxindoles is described by the one‐pot, three‐component reaction of hydrazine hydrate, ethyl acetoacetate, and isatins in water. The reported protocol is a green and general route for the simple preparation of new heteroaromatic substituted 3‐hydroxy‐2‐oxindoles in quantitative yields under very mild reaction conditions by using simple, cheap, and readily available materials. The developed method is effectively applicable to a variety of isatin substrates. Operational simplicity, mild and greener reaction conditions, short reaction time, a wide scope of substrates, good isolated yields of the products, and environmentally benign reaction medium are the distinctive features of the present method.