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A new and greener approach has been developed for the direct and one-pot synthesis of 2-aryl substituted N-(4-oxo-1,2-dihydroquinazolin-3(4H)-yl)aryl or alkylamide derivatives. The methodology involved reaction of isatoic anhydride, acid hydrazides and aldehydes in the presence of montmorillonite K10 in ethanol under ultrasound irradiation. A number of desired products were synthesized in good to acceptable yields by using this method. The methodology allowed quicker and cost-effective access to this class of compounds under relatively green reaction conditions. The recyclability of the catalyst was tested and a plausible reaction mechanism was proposed. Keywords: Isatoic anhydride, Acid hydrazides, Aldehydes, Montmorillonite K10, Ultrasound