†Electronic Supplementary Information (ESI) available: [ 1 H and 13C NMR and HRMS spectra of all the new compounds, COSY and NOESY spectra of compounds 5a, 7 and 11, details of computational studies (Cartesian coordinates and absolute energies).See A highly diastereoselective Ugi three-component reaction (U3CR) involving chiral 3,4-dihydroisoquinolines (DHIQs), isocyanides and carboxylic acids has been developed to synthesize enantiopure 1,2,3,4-tetrahydroisoquinolines (THIQs). The inherent chirality of DHIQ at C-3 and C-4 controles the addition of isocyanide at C-1 to induce excellent diastereoselectivity. The method was applied to a variety of aromatic and aliphatic acids, and in most cases reaction proceeded smoothly without formation of any side product. The experimental and computational studies demonstrated the role of internal chirality in conformational stability of intermediate to control the facial selectivity and strong solvent effect on the reaction. Cytotoxicity of selected compounds was also evaluated against four types of human cancer cell lines MCF-7 (Breast cancer), MDA MB-231 (Breast cancer), DU-145 (Prostate cancer), A549 (Lung cancer) and HepG2 (Liver cancer) where few compounds exhibited GI50 values in submicromolar range.