Allylative cyclization of (o-alkynylphenyl) (methoxymethyl) sulfides, o-alkynylanilines and o-alkynylphenols catalyzed by π-allyl palladium species generated from simple allylic alcohols is described. 3-Allylbenzo[b]thiophenes, 3-allylindoles and 3-allylbenzofurans were obtained in good yields using aqueous media under neutral conditions.