The extraordinary catalytic activity of palladium in C-C bond forming processes is reviewed in respect to Heck and carbonylation reactions. Examples of catalytic systems based on palladium complexes with phosphorus ligands and phosphine-free systems and based on the Pd(0) colloid are presented. The two key steps of both reaction mechanisms: first, reduction of Pd(II) to Pd(0) complexes or Pd(0) colloids and second, oxidative addition of substrates (aryl or benzyl halides) are discussed. (c) 2005 Elsevier B.V. All rights reserved.