omega-(2,3-Butadienyl)lactams react with aryl iodides in the presence of n-Bu4NCl, K2CO3 and a catalytic amount of Pd(PPh3)(4) to give bicyclic enamides resulting from attack of nitrogen on the central carbon and transfer of the aryl group to the terminal carbon atom of the allene. (C) 1997 Elsevier Science Ltd.