Herein we report an example of tandem. oxidative acetoxylation/carbocyclization of arylallenes 1 using Pd(OAc)(2). The catalytic protocol is highly selective and provides access to new C-C and C-O bonds leading to a carbocyclization. The reaction proceeds via C-H activation by Pd. Mechanistic investigations show that the C-H activation is not the rate-limiting step and indicate that the reaction proceeds via acetoxylation of the allene.