2-(1H-benzo[d]imidazol-2-ylthio) acetohydrazide (3) undergoes facile condensation with aromatic aldehydes to afford the corresponding 2-(1H-benzo[d]imidazol-2-ylthio)- N'-arylidene aceto hydrazide (4a-d) in good yields. Cyclocondensation of compounds (4a-d) with thioglycolic acid yields 2-(1H-benzo[d]imidazol-2-ylthio)-N-(4-oxo-2- arylthiazolidin-3-yl) acetamide (5a-d). The structures of these compounds were established on the basis of analytical and spectral data. All the newly synthesized compounds were evaluated for their antibacterial and antifungal activities