An oil-in-water microemulsion containing PdCI2 and NaOH can be used as an effective catalyst system for rapid copper- and ligand-free Sonogashira reaction of aryl halides and phenylacetylene. Excellent yield of the Sonogashira reaction catalyzed by 0.5 mol% palladium could be achieved within 5 min. The types of base have an intense influence on the reaction. The reaction rate was increased with increased aqueous content in the microemulsions, and dispersed palladium nanoparticles can be in situ formed without other reductants. (c) 2006 Elsevier Inc. All rights reserved.