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An (iminoacyl)palladium complex (3a) prepared from the reaction of methylpalladium complex 1a with o-((trimethylsilyl)ethynyl)phenyl isocyanide (2) undergoes an intramolecular insertion of acetylene at 45 °C in chloroform to give the ((E)-indolidenemethyl)palladium complex 4a quantitatively. The treatment of 3 with AgPF6 followed by Et4NCl at room temperature causes smooth insertion of acetylene, giving the ((Z)-indolidenemethyl)palladium complex 5 as a main product.