The Palladium complex PdCl2(bipy) (1) was found to be efficient in catalyzing the Heck reaction of aryl halides in a biphasic system comprising ethylene glycol along with an organic solvent. A proper tailoring of the organic phase ensured that the leaching of the catalyst to the organic phase was negligible. The catalyst was active for the Heck reaction of a number of olefins, aryl halides, in presence of organic and inorganic bases. The PdCl2(bipy) catalyst was stable and could be recycled for five times without any loss in activity and selectivity. A major advantage of this work is that unlike hitherto reported biphasic systems; it does not employ a water-soluble ligand to achieve biphasic catalysis. (c) 2007 Elsevier B.V. All rights reserved.