An efficient and practical aluminium-catalysed approach towards a range of functional oxazolidinones is reported. The method is based on cheap and readily available starting materials including terminal and internal (bicyclic) epoxides and phenylcarbamate. The oxazolidinones serve as highly useful synthons for the high yield preparation of nonsymmetrical ureas by nucleophilic ring-opening affording the targeted urea compounds with excellent functional group diversity, and high regio-selectivity and isolated yields up to >99%.