We report that dendrimer-encapsulated Pd nanoparticles having a diameter of similar to 1.7 nm are effective and general catalysts for coupling aryl halides to organostannanes (the Stille reaction) under mild conditions. The significant results of this study are that the Stille reaction is catalyzed by dendrimer-encapsulated Pd nanoparticles in very good yield, in aqueous solution at 23 degrees C, and using only 0.100 atom % of Pd as catalyst.