Excellent yields and at least 95 % ee can be achieved for the addition of dimethyl malonate to cycloalkenyl acetates by using a palladium complex of the new phosphanyldihydrooxazole ligand L as a catalyst (see scheme). The ligand L can be synthesized from commercially available trans 4-hydroxy-L-proline in four steps. BOC=tert-butoxycarbonyl.