Asymmetric palladium-catalyzed alkylation of 1,3-diphenyl-2-propenyl acetate with dimethyl malonate occurs in water in the presence of surfactants and a base. The efficiency as well as the enantioselectivity of the coupling reaction depend strongly on the nature and the concentration of the surfactant. The highest yield and enantioselectivity (up to 91%) was obtained using Binap as the ligand in the presence of a cationic surfactant, while neutral or zwitterionic surfactants gave poorer results; anionic surfactants gave no reaction at all. The best results were obtained using Na 2 CO 3 , NaHCO 3 , or K 2 CO 3 , among the bases used. The highest enantioselectivities were obtained when the reaction was performed in the presence of chiral atropoisomeric diphosphines such as Binap, Biphemp, or MeOBiphep. A supported cationic surfactant was also used successfully in this reaction, allowing an easier separation of the product.