In the present study, complex of palladium (II) had been synthesized and applied as a catalyst to synthesize new indole derivative 3'-hydroxy-4'-phenyl-4'H-spiro[indole-3,5'-[1,2,4] oxadiazol]-2(1H)-on (H1) with high efficiency. The structures of the compounds were determined by comprehensive spectroscopic analyses of their 1H
13C NMR and gas chromatography-mass spectrometry (GC-MS). Besides, this study also shows the optimal conditions for synthesis of compound H1 and its ability to inhibit enzyme ????-glucosidase.