PURPOSE: To readily obtain a 2-(2-substituted-2-propenyl)indane-1,3-dione compound useful as a synthetic intermediate for medicines or agrichemicals in a high yield.

CONSTITUTION: An indane-1,3-dione compound of formula I (R1 is H, lower alkyl, lower haloalkyl, lover alkenyl, lover alkinyl, benzyl; A is 1,3-butadienylene or 1,3-azabutadienylene which may be substituted) is reacted with a 2- propenylalcohol of formula II [R2 is phenyl or pyridyl which may be substituted; R3 is H, R4C(O)- (R4 is lower alkyl or lover alkoxy)] or its carbonate ester in the presence of a palladium (0) catalyst or with a 2propenyl alcohol of formula III in the presence of an acid catalyst to produce a compound of formula IV such as 2-[2-(3-chlorophenyl)-2-propenyl]-2-ethylindane-1,3-dione.