Observation of an unexpected, Lewis acid promoted displacement of latent reactive γ‐amino group on cyclopentenone presented unparalleled opportunity for enone functionalization and annulations with indole derivatives, which is developed in the current study. Herein, a vast range of C3/N‐indolyl enones and indole alkaloid‐like compound were accessed in excellent yields (up to 99 %) and selectivity through a one‐pot operation. The mechanism most likely involves an unprecedented trait of Piancatelli‐type rearrangement where influence of the gem‐diaryl group appeared crucial.