An intermolecular annulation reaction of 2‐aryl‐1,3‐indandions with alkynes was reported using Pd(OAc)2 to access spirobi[indene]‐1,3‐diones. Under palladium catalysis, the substrates form a homocoupling dimer intermediate through a catalytic dehydrogenative cross‐coupling process. The palladium(II) species could come from dimer or 2‐aryl‐1,3‐indandion. Notably, this pathway is not typically observed in enol‐directed formal sp3 C‐H functionalization/oxidative annulation palladium chemistry. This transformation provides a route to access a class of functionalized spiro carbocyclic indenes.