An efficient and green synthesis of hitherto unreported 11-(chromen-3-yl)-8,8-dimethyl-8,9-dihydro-6H-chromeno[2,3-b]quinoline-10,12(7H,11H)-dione has been accomplished by a three-component reaction involving 2-aminochromone, chromone-3-carbaldehyde, and 5,5-dimethyl-1,3-cyclohexanedione (dimedone) in 0.5 M aqueous SDS solution. The mechanism of the reaction has been studied by isolating the reaction intermediate. This methodology features eco-friendly reaction conditions, a simple working procedure, high atom-economy and high efficiency in product formation.