Palladium-catalyzed dearomative [2+2+1] annulations of aryl ethers with alkynes are reported via para-selective C-H functionalization, providing highly functionalized spirocyclohexadienones in moderate to excellent yields under mild reaction conditions. Importantly, mechanistic investigation indicated an unusual C-O bond cleavage was involved. Moreover, polyarylated naphthalenes could be obtained via oxidative [2+2+2] annulation by tuning aryl ethers from monomethoxybenzenes to polymethoxybenzenes under an identical catalytic system.