A cationic SNS-benzylpalladium complex was reacted with O2 under several conditions, affording oxygenated compounds derived from the benzyl ligand. The addition of n-Bu4NX remarkably accelerated the oxygenation, furnishing benzaldehyde as a main organic product and dinuclear complexes; in contrast, HX also promoted the oxygenation, but mainly produced benzyl hydroperoxide and mononuclear complexes.