Various derivatives of Indole were synthesized using 3-acetylindole as a precursor. The structures of synthesized compounds were confirmed by the use of their spectral data FTIR, 1H NMR and elemental analysis. The IR spectra of newly synthesized compounds showed the presence of characteristic absorption bands in the region 3100-3400, 3000-3100,1750-1800,1680-1700 and1100-1240 cm-1 which can be N-H stretching, Ar-H stretching, C=O stretching, C=N stretching and C-N stretching respectively. The antibacterial activity of the synthesized Indole derivatives was determined in vitro using Cup-plate method on nutrient agar medium against Gram-positive bacterial strains (B. subtilis and S. aureus) and Gram-negative bacterial strain (E. coli) and antifungal activity was carried out against diamorphic fungal strain C. albicans and another strain A. niger at 25, 50 and 100 ug/ml concentration. The zone of inhibition was measured and compared with standard drugs Roxithromycin and Fluconazole at 50 μg/ml concentration respectively. Anti-inflammatory activity was carried out using carrageenan induced rat paw edema method by Winter et al. The results revealed that newly synthesized compound was found to the most potent Anti-inflammatory compounds.