A new chemoselective iodocarbocyclization of allenyl arenes was developed leading to the formation of 2-iodoindenes. In acetonitrile or nitromethane, electrophilic sources of iodine cations react selectively with the C2-C3 double bond of 1-arylallenes to give, after anti nucleophilic attack of the aromatic ring, 2-iodoindene products in high yields. Variations of the allenic skeletons revealed the high 5-endo selectivity and some competitive pathways of cyclization. Postfunctionalization reactions of the carbon-iodine bond, via Pd- and Cu-cross-couplings, gave rise to substituted indenes in good to excellent yields.