In the context of the present medicinal advancement, the research has been carried out to synthesize and improvise some Indole derivatives having pharmacological activity through inclusion complex formation with β-cyclodextrin. The thermodynamic stability of the inclusion complexes are determined by studying different parameters such as free energy change and stability constant. The compounds and their inclusion complexes are characterized on the basis of physical and spectral analysis (UV,FT-IR,1HNMR). The biological screening was done against three bacterial strains i.e E.Coli, S.aureus and P. Vulgaris in order to explore their vital antimicrobial activities. The antioxidant activities are also studied. Both the antibacterial and antioxidant activities are noticeably enhanced after encapsulation into the cavity of β-cyclodextrin.