A mixture of ethanolamine and acetic acid as ethanolammonium acetate and various aldehydes in the presence of methyl acetoacetate were converted to N-hydroxyethyl 1,4-dihydropyridines under mild and solvent-free conditions in good to excellent yields. Reactions occurred both in the presence and in the absence of molecular iodine. Molecular iodine catalyzed the described reaction efficiently and also improved the reaction yields. (c) 2006 Published by Elsevier B.V.