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The insertion reaction of isocyanides with thiocarbamates and selenocarbamates in the presence of a Pd(0) catalyst to selectively give 2-oxoethanimidothioates and -selenoates is reported. This is the first example of the insertion of an isocyanide into a carbon–heteroatom bond using a transition-metal catalyst. DFT calculations suggest that the reaction proceeds through a thiopalladationpathway at the migratory insertion process.