A new method has been developed which allows palladium(0)-catalyzed allylic substitution to occur between allylic alcohols and anionic C-nucleophiles: on reaction with Ph3B, the allylic alkoxide 7 is first converted in situ into the more reactive species 8 which then undergoes a Pd(0)-catalyzed reaction with lithiodiethyl malonate via the eta3-complex 9.