Two series of new 2,3-dihydrooxazole-spirooxindole derivatives were efficiently synthesized starting from N'-(2-oxoindolin-3-ylidene) benzohydrazide/N'-(2-oxoindolin-3-ylidene)-2-phenoxyacetohydrazide using designed synthetic route. Newly synthesized 2,3-dihydrooxazole-spirooxindole derivatives were screened for their antibacterial and antifungal activity against different pathogenic strain of bacteria and fungi. The minimum inhibitory concentration (MIC), minimum bactericidal concentration (MBC) and minimum fungicidal concentration (MFC) were determined for the test compounds as well as for reference standards. Compounds 4e, 4g, 7g have shown good antibacterial activity whereas compounds 4f, 7b, 7d have displayed better antifungal activity.