A palladium-catalyzed cascade strategy has been developed for one-pot synthesis of functionalized spiro(indoline-3,2′-quinazolin)-2-one derivatives from readily available starting materials. The reaction proceeds via C–C and two C–N bond formations in a single reaction operation. This method offers an attractive pathway for the synthesis of a broad range of spiro(indoline-3,2′-quinazolin)-2-ones in good yields.