An efficient synthesis of 2-alkyl/aryl substituted benzo [b] furans/nitrobenzo [b] furans in water has been accomplished via Pd/C catalyzed reaction of o-iodophenols with terminal alkynes in the presence of PPh3, CuI and prolinol. This method can tolerate a variety of functional groups present in the alkynes as well as base labile nitro group in the o- iodophenols. The protocol does not require the use of a phase transfer catalyst or water- ...