A variety of indoles, all bearing a methyl group in the 3-position, underwent smooth reaction with 1,1-cyclopropanediesters to yield annulated adducts in fair to excellent yield. Under kinetic control the annulation reaction was dominant, but under high temperature conditions for extended periods of time, rearrangement occurred leading to 2,3-dialkylindoles. Hyperbaric conditions were found to be effective in sterically demanding cases. (C) 1999 Elsevier Science Ltd. All rights reserved.