A general synthesis of 2-aryl benzazepines has been developed through palladium-catalyzed ring-expansion reactions of cyclobutanols with 2-haloanilines; the further oxidative rearrangement reaction of benzazepines provided an efficient synthesis of 2-acyl quinolines. These transformations feature the efficient construction of six- and seven-membered N-containing heterocycles from easily obtained materials with excellent functional group tolerance.