The carbonylation of (~3-allyl)palladium(II) chloride dimer in the presence of an excess of ylide, such as Ph,PC(H)COR (R = Me or Ph) (Pd: ylide = 1: 5) in MeOH or EtOH, at a CO pressure of 4 atm at room temperature occurs with reduction of the palladium(U) complex to palladium metal and with formation of the corresponding alkyl 3-butenoate with a high yield. The ylide does not give rise to any carbonylation product. When the carbonylation is carried out in the presence of PPh, (Pd: PPh, = 1: 2-3), there is also formation of the unsaturated ester, although in lesser amount, together with [Pd,(PPh,),(CO),](n E 3 or 4) or [Pd(PPh,),(CO)] and trans-[Pd(PPh,),(COOR)CI] (R = Me or Et). These products also form when the carbonylation is carried out in the presence of NJZt, or PrCOONa, in place of the ylide, and of PPh,.It has also been found that [Pd(PPh3),C12] reacts in MeOH or EtOH at a CO pressure of 4 atm at ambient temperature in the presence of an excess of ylide to give the corresponding carbalkoxy complex trans-[Pd(PPh3)JCOOR)C1]. These findings suggest that the ylide probably promotes formation of carbalkoxy species, as do NEt, or PrCOONa because the ylide can behave as a base (pK, = 7). They are strong support for the suggestion that the carbonylation of (allyl)palladium complexes occurs via a (carbalkoxy)palladium species.