A series of novel Azetidinone derivatives have been synthesized from the intermediate schiff bases. Schiff bases are prepared from sulfamethoxazole moiety by reacting the hydrazide of the parent compound with different aromatic aldehydes. Cyclocondensation of schiff’s bases with acetylchloride resulted in the formation of azetidinone derivatives. The products, characterized on the basis of satisfactory spectral data (IR, NMR, Mass spectroscopy), have shown moderate to good antimicrobial activity against some bacteria and fungi.