Isatin chalcones and their 3‐hydroxy precursors are shown to possess potential anticancer activity and are also versatile substrates and key intermediates for the synthesis of a large variety of bioactive spiro‐oxindoles. An environmental friendly tandem synthesis, using PEG 400 as green solvent cum phase transfer catalyst, for a series of 3‐hydroxy‐2‐oxindoles and 3‐methylene‐2‐oxindoles has been developed. Reported one‐pot sustainable synthetic strategy was compared with the conventional method and was found to be superior to existing two‐step syntheses in terms of simplicity, product yield, and reaction time and have a large substrate scope.