We report the observation of the baryonic B decay B0bar --> Lambda_c^+ anti-Lambda K- with a significance larger than 7 standard deviations based on 471x10^6$ BBbar pairs collected with the BABAR detector at the PEP-II storage ring at SLAC. We measur
e the branching fraction for the decay B0bar --> Lambda_c^+ anti-Lambda K- to be (3.8 pm 0.8_{stat} pm 0.2_{sys} pm 1.0_{Lambda_c^+})x10^{-5}. The uncertainties are statistical, systematic, and due to the uncertainty in the Lambda_c^+ branching fraction. We find that the Lambda_c^+ K^- invariant mass distribution shows an enhancement above 3.5 GeV/c^2.
