A palladium-mediated high-yielding synthesis of oxygenated 2-methylindolines 4 from 2-allylnitrobenzene 1 and hydrazine is developed. The one-pot route combines the reduction of 2-allylnitrobenzene 1 and the sequential intramolecular hydroamination. The protocol provides a novel alternative for the synthesis of substituted 2-methylindoline 4. (C) 2014 Elsevier Ltd. All rights reserved.