In this article, we discuss the recent developments in palladium (Pd)‐catalyzed C(sp
3
)H activation assisted by native directing groups. Although studies on preinstalled (exogenous) directing group‐aided Pd‐catalyzed C(sp
3
)H functionalization reactions are still emerging, research on Pd‐catalyzed C(sp
3
)H activation assisted by native directing groups is growing at a considerable pace. Native directing groups refer to inherent functional groups or moieties present in small organic molecules. Accordingly, this article presents developments involving the Pd‐catalyzed C(sp
3
)H functionalization of small organic molecules containing functional groups, such as carboxylic acid, amine, azaarene, ketone, and part of peptide moieties, which act as native directing groups.