Carbonyldiimidazole (CDI) promoted generation of CO from formic acid has been exploited in the reductive formylation of aryl iodides in the presence of Pd2(dba)3. The reaction conditions are mild with broad functional group tolerance that includes keto, bromo, nitrile, ester, and nitro groups. In the reaction pathways, CDI upon reaction with formic acid generates the formyl imidazole which ultimately produces CO needed for the formylation process upon the activated arylpalladium complex.