Sources of drugs from plant, animals and Vineral sources have been increasing with the time but due to lack of potential actions and definitive cure and sometimes more toxicity, the discovery of new drugs that are more potential and less toxic is essential. The synthesisof derivatives has been an important part and is aimed at modifying the action of drugs,particularly to reduce the side effects and to potentiate the drug action. Today more than60% of the drugs used in practice are synthesized derivatives and day by day the scope ofsynthetic medicinal chemistry is broadening.Oxadiazoles are five-membered heterocyclic compounds with two nitrogen and one oxygen atoms. They are synthesized by ring condensation and rearrangement reactions. The structures of the synthesized compounds were characterized and confirmed with the help of analytical data such as IR and 1HNMR. From the results that all the synthesized compounds showed better results against the bacterial and fungal strains. Among the synthesized derivatives 2-(2-hydroxyphenyl)-5-p-tolyl-1,3,4-oxadiazole and 2-(2-hydroxyphenyl)-5-p-tolyl-1,3,4-oxadiazole showed better results than the other compounds against fungal as well