Carbon dioxide undergoes a Pd-catalyzed [3+2] cycloaddition with trimethylenemethane (TMM) under mild conditions (1 atm, 75 C, 30 min)to produce a -butyrolactone product in 63% yield, when the Pd-TMM complex is generated from 2-(acetoxymethyl)-3-(trimethylsilyl)propene.The reaction reported here is more rapid than the all-carbon [3+2] cycloaddition, and only the -butyrolactone is produced in a competitionexperiment. With substituted substrates, the reaction is completely regioselective, producing the product derived from the kinetic Pd-TMMcomplex.