A new application of the hypervalent iodine reagent phenyliodine (III) bis (trifluoroacetate)(PIFA) has been developed for the construction of a series of N, O, S- containing heterocycle-fused quinolinone derivatives in a general and efficient way. An alternative approach to the formation of these novel tricyclic heterocycles by a PIFA mediated aryl–heteroaryl coupling reaction is also presented.