In the present work, we have performed eco-benign strategy of in situ formation of PdNPs using aqueous extract of Acacia auriculiformis pods for Mizoroki-Heck coupling. A series of (E)-1-(3-argioallyl)indoline-2,3-diones have been synthesized from coupling of aryl halides with allyl isatins. The PdNPs were characterized by transmission electron microscopy (TEM) which revealed PdNPs size of around 6 nm. The key features of the present method are synthesis of novel derivatives of (E)-1-(3-argioallyl)indoline-2,3-diones, PdNPs in aqueous biosurfactant extract as catalytic system which can be recycled for four times without significant loss in the catalytic activity, no need of external ligand. The influence of various parameters such as the nature and amount of base, source of Pd, screening of available surfactants as well as the effect of temperature has been investigated. [GRAPHICS] .