SBA-15 and organic ionic liquid were incorporated in a post-grafting technique for generating a bifunctional ionic liquid embedded mesoporous SBA-15. The prepared heterogeneous catalyst was employed for the first time to synthesize N-alkylated indoline-2,3-dione at mild conditions to afford excellent yields in a short reaction time. The synthesized DABCOIL@SBA-15 catalyst was meticulously characterized by various techniques, such as FT-IR, solid-state 13C NMR, solid-state 29Si NMR, small-angle X-ray diffraction (XRD), and N2 adsorption–desorption. Further, the morphological behavior of the catalyst was studied by SEM and TEM. The thermal stability and number of active sites were determined by thermogravimetric analysis (TGA). The Hammett equation was used to analyze the synergetic effect of the catalyst and substituent effects on the N-alkylated products of 5-substituted isatin derivatives, which resulted in a negative slope. This negative slope indicates a positive charge in the transition state. Notably, the DABCOIL@SBA-15 catalyst demonstrated its practicality by being reused for seven cycles with consistently high catalytic activity.