We herein describe a novel palladium catalysed three-component cascade process involving carbonylation of an aryl iodide to generate an acyl palladium(II) species that is intercepted by a primary aliphatic or aromatic amine, amide, or sulfonamide followed by intramolecular Michael addition to furnish N-substituted isoindolinones in good yield. Overall, the cascade results in the formation of one CC and two CN bonds, one ring and one stereocentre.Key words: isoindolinone, palladium, cascade, amidation, sulfonamidation.