A simple and efficient method has been developed for the synthesis of a new collection of isatin and 5-isatinylidenerhodanine derivatives carrying furan group, from N-(carboxymethyl)isatin through a multi-component reaction is explained. The reactive 1:1 intermediate formed from the reaction of isocyanides and dialkyl acetylenedicarboxylates was trapped at reflux temperature using N-(carboxymethyl)isatin derivatives to produce poly functionalized furan rings in good yields.