Treatment of N-allylamides 1a-c and lactams 1d-f with molecular oxygen in the presence of [PdCl2(MeCN)2]-CuCl catalyst in anhydrous 1,2-dichloroethane containing hexamethylphosphoric triamide gives the corresponding aldehydes 2 regioselectively, while methyl ketones 3 become the major products in the presence of water.