Ideal iodonium: A method for the direct N-arylation of carbazoles and C-arylation of tetrahydrocarbazoles (substituted indoles) with diaryliodonium salts mediated by KOtBu in toluene has been developed. A range of arylated products were obtained in 50–92 %yield. The reaction has a wide scope and is tolerant of a broad range of functional groups.