The complex (Me3tacn)Pd(II)(CH2CMe2C6H4) is readily oxidized by O2 or H2O2 to yield the Pd(IV)-OH complex [(Me3tacn)Pd(IV)(OH)(CH2CMe2C6H4)](+). Thermolysis of this product leads to the selective C(sp(2))-O reductive elimination of 2-tert-butylphenol, no C(sp(3))-O elimination product being detected. This system represents a rare example of selective C(sp(2))-O bond formation that is relevant to Pd-catalyzed aerobic C-H hydroxylation reactions.