This Letter describes a Pd-catalyzed Tsuji–Trost-type/Heck reaction with allyloxy-tethered aryliodides and aziridines. The strategy provides efficient access to benzannulated medium-sized rings via intermolecular cyclization. The substrate aryliodide has two oxidative addition sites, that is, the aromatic C–I bond and the allyl–oxygen bond. The chemoselective oxidative addition of allyl–oxygen bonds