New amphiphilic resin-supported triarylphosphines PEP (1) were designed and prepared on polyethylene glycol-polystyrene graft copolymer (PEG-PS). Palladium complexes of 1, Pd(PEP)(2) (4) and Pd(PEP) (5), catalyzed allylic alkylation of 3-acetoxy-1,3-diphenyl-1-propene (6) and cinnamyl acetate (7) with various nucleophiles including 1,3-dicarbonyl compounds, amino acids, sodium azide, and sodium sulfinate, to give quantitative yields of corresponding allylic substituted products in water. (C) 1999 Elsevier Science Ltd. All rights reserved.