2,3-Dihydrobenzofurans and indolines are common substructures in medicines and natural products. Herein, we describe a method that enables direct access to these core structures from non-conjugated alkenyl amides and <i>ortho</i>-iodoanilines/phenols. Under palladium(II) catalysis this [3+2] heteroannulation proceeds in an <i>anti</i>-selective fashion and tolerates a wide variety of functional groups. <i>N</i>-Acetyl, -tosyl, and -alkyl substituted <i>ortho</i>-iodoanilines, as well as free –NH<sub>2</sub> variants, are all effective. Preliminary results with carbon-based coupling partners also demonstrate the viability of forming indane core structures using this approach. Experimental and computational data with phenols support a mechanism involving turnover-limiting, endergonic directed oxypalladation, followed by intramolecular oxidative addition and reductive elimination.