An efficient palladium catalyzed diastereoselective synthesis of 2,2,3-trisubstituted dihydrobenzofurans has been accomplished in good yield as a single diastereomer. The transformation involves in-situ generation of oxonium ylide from 2-hydroxyphenyl substituted enone and diazo compound followed by intramolecular trapping via Michael addition. Successful integration of the developed method with intramolecular aldol condensation afforded potent dibenzofuran derivatives in good yield. © 2021 Elsevier Inc.