An FeCl₃-catalyzed tandem reaction of 2-iodoaniline with isothiocyanate in water is described, which provides an environmentally benign, efficient, and practical route for the generation of 2-aminobenzothiazole. This present tandem process shows broad substrate scope in the presence of octadecyltrimethylammonium chloride as a phase-transfer catalyst. In addition, the reaction media can be recovered and recycled without loss of efficiency.