(Z)-Narceine imide (1) reacted with 1,2-epoxypropane to narceone imide (2) and with an excess of epoxide to N-(2-hydroxypropyl)narceone imide (3). Cyclization of 3 in acidic media afforded two isomers of 8,14-dimethyl-11,12-methylenedioxy-3,4,10-trimethoxyindano[1',2':2,3]morpholino-[3,4-a]isoindolin-5-ones 16 and 17 which differed in the spatial orientation of the C-8-CH3. Narceonic acid (18) cyclized into the isochroman-3-spiro-3'-phthalide derivative 19.