Conditions have been developed to achieve the palladium catalysed telomerization of butadiene with L-arabinose and D-xylose in aqueous medium. The success of the reaction requires the presence of a tertiary amine as promoter with a catalytic system based on Pd-TPPTS. The etherification first occurs on the anomeric hydroxyl and, depending on the amine used, a second etherification leads to formation of the diether.