The first example of asymmetric cyclization-carbonylation of cyclic-2-methyl-2-propargyl-1,3-diols 1 catalyzed by palladium(II) with chiral bisoxazolines was investigated. The reaction of 1 in the presence of palladium(II)-chiral ligands/p-benzoquinone in methanol at 0 to -45degreesC under carbon monoxide atmosphere (balloon) afforded (E)-bicyclic-beta-alkoxyacrylates 2 in excellent yields with moderate enantioselectivities. (C) 2002 Elsevier Science Ltd. All rights reserved.