A selective and efficient catalytic process has been developed for the oxidative coupling between N-aryl-2-aminopyridines and alkynes using a nanocrystalline magnesium oxide (NAP–MgO)-supported palladium nanoparticle [NAP–Mg–Pd(0)] catalyst and CuCl₂ as an oxidant. The process involves the ortho C–H activation of N-aryl-2-aminopyridines to give N-pyridyl indoles in excellent yields and the true heterogeneity of the catalyst is verified by studying the recoverability and reusability for four cycles without significant loss of catalytic activity.