A series of novel 1,3,4-oxadiazole derivatives incorporated with quinolone moiety were designed and synthesized as biological compounds. In vitro antibacterial activity of the synthesized compounds (5a-g) was performed against Gram +ve microorganisms Staphylococcus aureus (MTCC No. 96), Pseudomonas aeruginosa (MTCC No. 1688), Bacillus subtillis (MTCC No. 121) and Gram -ve microorganisms Escherichia coli (MTCC No. 521). In vitro antifungal activity of compounds was screened against Candida albicans. The structure of all new compounds was confirmed by IR, 1H-NMR and Mass spectra.