The catalytic cycle of asymmetric 1,4-addition of phenylboronic acid to an alpha,beta-unsaturated ketone catalyzed by a rhodium-binap complex was established by use of RhPh(PPh3)(binap) as a key intermediate. The reaction proceeds through three intermediates, phenylrhodium, oxa-pi-allylrhodium, and hydroxorhodium complexes, all of which were observed in NMR spectroscopic studies. The transformations between the three intermediates, that is, insertion, hydrolysis, and transmetalation, were also observed. On the basis of the catalytic cycle, a more active chiral catalyst, [Rh(OH)(binap)](2), was found and used successfully for the asymmetric 1,4-addition reactions.