Treatment of N-protected indoles 3 with acetyl nitrate generated in situ at low temperatures affords the corresponding 3-nitroindoles 2 in good to excellent yields. Deprotection of 1-acetyl-3-nitroindole (2h) with DBU gives 3-nitroindole (1). Reaction of 5-chloro-3-nitro-1-(phenylsulfonyl)indole (2k) with ethyl isocyanoacetate and base affords the rearranged ethyl 5-chloro-1,8-dihydro-8-(phenylsulfonyl)pyrrolo[2,3-b]indole-2-carboxylate (5). In contrast, treatment of nitroindoles 2d-f with ethyl isocyanoacetate and base affords the expected pyrrolo[3,4-b]indoles 6-8, the products of a normal Barton-Zard pyrrole synthesis.