Abstract Tertiary propargylic alcohols reacted with carbon monoxide in the presence of catalytic quantities of a cationic palladium (II) complex,[Pd (CH 3 CN) 2 (PPh 3) 2](BF 4) 2, to afford 2 (5H)-furanones and/or 2, 3-dienoic acids, the precursor of the furanones, in good yields under mild conditions.