A new type of carbonylation of styrenes was achieved under a 1:1 mixture of CO (0.5 atm) and O2 (0.5 atm) in the presence of Pd(OAc)2 combined with H5PMo10V2O40·nH2O to give 4-methyl-2-phenylnaphthalen-1(4H)-one in 78% yield. Various substituted styrenes were also carbonylated to the corresponding substituted arylnaphthalen-1(4H)-ones in moderate yields. The reaction was found to proceed in two stages involving the head-to-tail dimerization of styrenes, followed by carbonylation of the resulting dimers. Styrenes were efficiently dimerized under air (1 atm) in the absence of CO even at room temperature to produce head-to-tail dimers in good yields.