An efficient and short synthesis of fused dihydroisoquinolines, diaryl substituted pyridine derivatives have been established in good to high yields using an environmentally safe, solvent‐metal‐oxidant‐free tandem approach. In this article, we have discussed that the electrocyclic reaction is more pronounced in solid phase in presence of urea whereas the typical aza‐Michael addition is more prominent in presence of arylamine in the solution phase for the substrate 3‐(2‐formylcycloalkenyl)‐acrylic ester derivatives. The wide range of substrate variations and urea‐promoted neat synthesis made our approach more significant in medical and also analytical science. Moreover, the isoquinoline alkaloid Decumbenine B analogue has been synthesized using our newly developed neat methodology. We have also investigated the photophysical properties of the synthesized fused dihydroisoquinoline derivatives. One of the synthesized molecules was used as a sensor for the selective detection of toxic picric acid. Therefore, the effective neat synthesis and molecular sensing applications of these compounds made our approach more exciting in the field of heterocyclic chemistry.