A convenient, recyclable catalytic synthesis of benzofuran-2-acetic esters 2 by sequential Pd(0)-catalyzed deallylation—Pd(II)-catalyzed carbonylative heterocyclization of 1-(2-allyloxyphenyl)-2-yn-1-ols 1 in ionic liquids is presented. Reactions were typically carried out in BmimBF 4 as the solvent at 100°C and under 30atm of CO, in the presence of catalytic amounts (1mol%) of PdI 2 in conjunction with KI (1equiv), PPh 3 (4mol%), MeOH (28equiv), and H 2 O (2equiv). The solvent-catalyst system could be recycled several times without appreciable loss of catalytic activity.