A novel synthesis of 3-substituted-3,4-dihydro-2H-1,3-benzothiazin-2-ones is described herein. The strategy relies on a highly regioselective palladium-catalyzed carbonylation of 2-substituted-2,3-dihydro-1,2-benzisothiazoles to give the corresponding 3,4-dihydro-2H-1,3-benzothiazin-2-one derivatives in good to excellent yields.