Abstract: P-Malonyl allyl sulfides and amines have been found to cyclize in the presence of lithium tetrachloropalladate and base to regiospecifically and stereospecifically provide fused bicyclic palladocycles which are converted to cyclopentanes upon hydrogenation. The cyclization may be extended to generate six-and seven-membered rings in high yield. Cyclization to provide cyclic ketones also occurs in high yield.