A benign approach to valuable 3-aryl-indolin-2-ones was developed based on palladium(II)/Lewis acid-cocatalyzed cyclocarbonylation of readily available (2-aminoaryl)(aryl)methanols. The protocol features producing water as the only byproduct, mild reaction conditions, and good efficiency, constituting an array of 3-arylindolin-2-ones in yields of 35 to 90%. The reaction can be easily scaled up to the gram scale in good yields.