A palladium-catalyzed CH functionalization of acetyl oxime with isocyanides has been developed for the synthesis of 2-iminopyrrol-3-amines. The reaction proceeds via oxidative NO cleavage of acetyl oxime to generate alkylideneimino-palladium (II) species followed by migratory double isocyanide insertion. The notable features of this reaction are broad functional group tolerance, good reaction yields, acetyl oxime as substrate and also as an internal oxidant. The scope of this reaction has been extended for the synthesis of 1H-pyrrole-2,3-dione in sequential one-pot via acid hydrolysis.