A concise and efficient synthetic approach was developed for the synthesis of functionalized 2,3‐disubstituted 1,6‐dihydropyrrolo[2,3‐g]indazole via a one‐pot, three‐component reaction of 1H‐indazol‐6‐amine, arylglyoxal monohydrates, and 4‐hydroxy‐2H‐chromen‐2‐one or 4‐hydroxyquinolin‐2(1H)‐one promoted by acetic acid in ethanol under reflux conditions. The attractive features of this protocol are operational simplicity, short reaction time, easy purification of products, and good to excellent yields.