A mild, efficient, and stable binaphthyl-stabilized palladium nanoparticles (PdÀ BNP) catalyzed (sp 3 )CÀ H reaction of 2-alkylazaarenes with activated carbonyl compounds was developed. Various activated carbonyl compounds such as α-keto amide, isatin, 1,2-diketone, α-keto ester, trifluoromethyl ketone, and phenylglyoxal derivatives were examined and most of the compounds underwent the reaction smoothly to provide the corresponding products in moderate to excellent yields. Moreover, chemoselective reactions of αketo amides in the presence of simple ketones were achieved. Also, the model reaction was extended to a gram-scale synthesis and some of the products were utilized for derivatization to form the corresponding Noxides, acryl amides and 1,2-diol, respectively. The major advantages of the protocol are neutral reaction conditions, no additional requirement of external ligand, and successful reusability of the PdÀ BNP catalyst up to five cycles without losing its activity and yield. Hg-poisoning and hot filtration tests confirmed the heterogeneity of the PdÀ BNP catalyst.[a] Reaction conditions: 1 (1.5 mmol) and 2 (0.5 mmol) were used in 2 mL of PEG 200. [b] Isolated yield.[a] Reaction conditions: 1 (1.5 mmol) and 4 (0.5 mmol) were used in 2 mL of PEG 200. [b] Isolated yield. Scheme 2. Reaction of quinaldine with activated ketones. Scheme 3. Gram-scale synthesis. 56% yield (104.7 mg); Colourless solid; mp 156-157°C (Lit. [10] mp 155-157°C); R f = 0.53 (30% ethyl acetate in hexanes); 1 H NMR (400 MHz, CDCl 3 ): δ = 2.46 (s, 3H), 2.63 (s, 3H), 3.43 (d, J = 14.8 Hz, 1H), 3.77 (d, J = 15.2 Hz, 1H), 6.93 (d, J = 7.6 Hz, 1H), 6.97-7.10 (m, 2H), 7.22 (t, J = 6.8 Hz, 1H), 7.32 (t, J = 7.2 Hz, 2H), 7.39-7.51 (m, 2H), 7.84 (t, J = 8.8 Hz,