A convenient and highly efficient palladium-catalyzed reaction of [60]fullerene (C60) with aroyl compounds via enolate-mediated C-H activation and hydroxylation has been exploited for the first time to synthesize novel C60-fused dihydrofurans, and rare 1,4-fullerenols. Further functionalization including etherification, and esterification of synthesized 1,4-fullerenols provided efficient access to versatile fullerene derivatives. M
oreover, a plausible reaction mechanism leading to the observed products is proposed.