C–C bonds, and the cross-coupling of unactivated C(sp3)–H and C(sp2)–H bonds is challenging and remains to be investigated. We have developed the Pd-catalyzed intramolecular coupling of inert C(sp3)–H and C(sp2)–H bonds. The reaction proceeded by o-methyl oxime-directed aryl C(sp2)–H activation and subsequent alkyl C(sp3)–H cleavage, generating C(sp2),C(sp3)-palladacycles as the key intermediates. Dihydrobenzofurans