A highly stereoselective synthesis of (Z)-beta-iodovinyl ketone has been achieved with the tandem formation of C-C and C-I bonds in a three-component reaction. This new catalysis utilises MgI2 as a Lewis acid as well as an iodine source for a Michael-type addition. alpha,beta-Acetylenic ketone is initially converted to an active beta-iodo allenolate intermediate and then can be attacked by a variety of aldehydes to afford Z-selective Baylis-Hillman adducts in excellent yields. (C) 2003 Elsevier Science Ltd. All rights reserved.