A green, novel and eco-efficient synthetic route towards the synthesis of highly substituted bio-active pyrrolidine-2-one derivatives was demonstrated using β-cyclodextrin, a water-soluble supramolecular solid as a green and eco-benign catalyst at room temperature under water–ethanol solvent medium. The exploration of the green catalyst β-cyclodextrin for the metal-free one-pot three-component synthesis of a wide range of highly functionalized bio-active heterocyclic pyrrolidine-2-one moieties from easily available aldehydes and amines explains the superiority and uniqueness of this protocol.