The synthesis of 3-acyl-2-arylindole derivatives was performed throughpalladium-catalyzedisocyanideinsertion and oxypalladation of an alkyne. As a result of the introduction of internal nucleophiles, domino cyclization was also achieved for the synthesis of several tetracyclic indole derivatives. Imidoylpalladium generated by isocyanideinsertion is a key intermediate in these reactions.