An elegant, mild and straightforward methodology was explored for the first time towards the synthesis of polyfunctionalized pyrroles using β-cyclodextrin as a reusable supramolecular catalyst in aqueous medium. The present method provides various diversely substituted pyrroles from the commercially available synthons in good to excellent yields. The advantages of this novel protocol are use of environmentally benign reaction medium and recyclability of β-cyclodextrin over the existing methods.