Direct cyclopalladation of (5)-2-ferr-butyl-4-phenyl-2-oxazoline using palladium acetate in acetic acid or acetonitrile provided a mixture of two isomeric compounds, the endo μ-AcO dimeric complex with a C(sp 3)-Pd bond and the corresponding exo derivative with a C(sp 2)-Pd bond, with the former being the major product. The μ-AcO dimeric complexes were converted to the corresponding μ-Cl analogues 3 and 4 by treatment with LiCl in acetone; the latter compounds were transformed to the corresponding PPh3 adducts 5 and 6. The NMR data suggested the puckered structure of the endo palladacycle in complexes 3 and 5, the twisted λ(S) conformation of the oxazoline ring in 3, 4, and 6, and the δ(S) conformation of the heterocycle in complex 5. The X-ray crystal structure of 5 confirmed the δ(S) conformation of the oxazoline ring in the solid state and the twisted conformation of the palladacycle and revealed a P-propeller chiral configuration of the PPh3 ligand. A series of ab initio quantum chemical calculations were performed on two model compounds generated by replacing the PPh3 ligands with NH3 in complexes 5 and 6. The structures and energies of the two model exo and endo isomers were calculated at the RHF, BLYP, and MP2 levels of theory with a 6-31G* basis for the light atoms and LANL2DZ ECP for the palladium and were found to be comparable. Single point coupled cluster calculations, with single double excitations (CCSD), corroborated the results.