A series of structurally intriguing novel pyrrolo[3,2-c]quinolinone heterocyclic hybrids have been synthesized for the first time via a one-pot multicomponent domino reaction sequence that involves a 1,3-dipolar cycloaddition and two subsequent annulation steps. Baylis-Hillman adducts derived from various substituted benzaldehyde and methyl acrylate in presence of DABCO were used as a dipolarophiles, while the 1,3-dipole components were azomethine ylides, formed in situ from isatin derivatives and l-phenylalanine. The reaction generated five new bonds, three new rings and four contiguous stereocenters, which were created with full diastereomeric control.