Reaction of the complexes trans-Pd(C6H4C-(H)=NPh)(NHPh)(PMe3)2 (1) and trans-Pd(C6H5)(NHPh)-(PMe3)2 (3) with dimethyl acetylenedicarboxylate (DMAD) results in the insertion of the acetylene into the Pd-N bond, forming cis- and trans-Pd[(MeOOC)C=C(COOMe)(NHPh)](C6H4C(H)=NPh)(PMe3)2 (2) and trans-Pd[(MeOOC)C=C(COOMe)(NHPh)](C6H5)(PMe3)2 (4). Thermolysis of 2 at 110-degrees-C gives a high yield (76%) of N-phenyl-1-anilino-3,4-bis(methylcarboxy)-1,2-dihydroisoquinoline (5).