Abstract Pyrazolopyridine and pyrazoloquinoline derivatives were obtained by a one-pot, three-component reaction of arylglyoxals, 3-methyl-1-aryl-1H-pyrazol-5-amines and cyclic 1,3-dicarbonyl compounds in the presence of tetrapropylammonium bromide at 80°C in water through Knoevenagel and Micheal reactions, followed by intramolecular condensation, unexpected dearoylation and oxidation. Mild reaction conditions, high yields, simplicity of work up procedure, starting materials availability and clean product formation are some of the main advantages of this synthetic strategy.