A series of 7-chloro-3-(2-substituted phenyl-4-oxo-thiazolidin-3-yl)-2-[2-(2,6-dichlorophenyl) amino]benzyl-quinazolin-4(3H)-ones (5a-j) have been synthesized and characterized by elemental analyses as well as IR and NMR spectra. The Schiff bases 4a-j and 4-thiazolidinones 5a-j have been sceened for in vitro antimicrobial activity by cup-plate method. Compounds 4f, 4g, 4h, 5f, 5g and 5h possessed very good antibacterial as well as antifungal activity.