We present a study on the synthesis, characterization, and application of phthalhydrazide‐functionalized MCM‐41 (P‐MCM‐41) as a novel and efficient heterogeneous basic catalyst. The described catalyst was fully characterized via various techniques such as scanning electron microscopy (SEM), transmission electron microscopy (TEM), energy dispersive X‐ray (EDX), X‐ray diffraction (XRD), and Fourier transform infrared (FT‐IR). P‐MCM‐41 efficiently catalyzed the four‐component reaction of arylaldehydes, Meldrum's acid, alkyl isocyanides, and isoquinoline in CHCl3 to prepare pyrrolo[2,1‐a]isoquinolines in good yields.