A green trend and efficient method for the synthesis of N-substituted γ, δ and ε-lactam derivatives has been developed through one pot multi-component reaction under environmentally benign reaction conditions using FeCl3 as a green catalyst with high atom economy. The present green synthetic protocol shows fascinating properties such as enhanced yield in solvent-free conditions, with high reaction rate, easy workup and absence of column chromatography and also avoids the use of ligands or additives. The versatility of the reaction has been ascertained by using various substituted benzaldehydes, anilines and homologues of lactams. © 2013 The Royal Society of Chemistry.