A green, convenient, ecological and recyclable method comprising dual functionalized, task-specific, ionic liquid (IL)-triggered, in situ-generated Pd nanoparticles (NPs) and their catalytic application for Heck-Matsuda coupling of olefins is described. Both arenediazonium tetrafluoroborate and silica sulphate salts are coupled with olefins under ligand-free and aerobic conditions at ambient temperature furnishing excellent yields of products. The Ionic liquid used acts as a reducing as well as stabilizing agent for in situ-generated Pd NPs. The formed NPs were characterized by transmission electron microscopy (TEM) analysis, having a size below 50 nm, and exhibited high catalytic activity. The catalytic system can be reused for eight times effectively without any significant loss of activity. The method was found to be highly stereo-specific, giving exclusively the 'E' isomer.