Herein, a palladium-catalyzed diastereoselective dearomatization/cross-coupling cyclization reaction between Narylacyl indoles and (E)-β-chlorovinyl ketones is reported. Through this cyclization/cycloisomerization cascade, a series of furan-containing indolines were obtained in yields up to 95%. The reaction features readily accessible starting materials, benzyl Pd(II)-catalyzed cycloisomerization of (E)-β-chlorovinyl ketones, the sequential formation of three bonds and bis-heterocycles, and excellent diastereoselectivity. More importantly, the carbene−secondary benzyl migratory insertion is proven to be a critical process in the sequential cyclizations.