A highly stereoselective protocol for the (3 + 2)-annulation of biphenyl-bridged seven-membered cyclic Nsulfonylimines with γ-hydroxy-α,β-unsaturated ketones was developed. The reactions afforded a wide range of chiral [5.7]-fused εsultams bearing N-adjacent 1,3-stereocenters in excellent yields (93−98% yields) and high enantio/diastereoselectivities (up to >99% ee, >20:1 d.r.) and two other examples with alkoxyl groups were obtained in 52−61% yields, 95% ee, and >20:1 d.r. by utilizing organocatalysis with quinine-derived squaramides.