A clean, one-pot synthesis of the biologically important 3-hydroxyquinolin-2(1H)-one compounds has been realized from the readily available N-phenylacetoacetamide derivatives through a PhI(OCOCF3)2-mediated 伪-hydroxylation and a H2SO4-promoted intramolecular condensation. The hydroxyl group in the generated 伪-hydroxylated intermediate can be well tolerated in the second H2SO4-promoted cyclization step.