A novel rhodium-catalyzed allylic substitution reaction using indium organometallics is reported. Aryl- and heteroarylindium reagents reacted in THF at 80 degrees C with primary and secondary allyl halides and their derivatives under rhodium(I) catalysis to afford the a-substituted products in good yields and with high regio- and stereoselectivity. The reaction takes place with substoichiometric amounts of the triorganoindium reagents, which demonstrates the efficiency of the indiumrhodium transmetallation process in carboncarbon bond-forming reactions.