A novel and simple method for the stereoselective synthesis of substituted 3-aryl-2,3-dihydrobenzofurans by intramolecular cyclization of hydroxyphenols is described. The stereoselective ortho-C-alkylation of phenols allows a novel and stereoselective access to a diverse array of polyfunctionalized products containing a diarylmethane stereogenic center without the need for time-consuming protection-deprotection steps.