2-Hydroxy-1-naphthaldehyde served as a good starting material for the synthesis of the azines, which was prepared from 2-naphthol by Reimer-Tiemann reaction. The hydroxy aldehyde on treatment with phenacyl bromide, under basic condition, underwent both condensation and cyclization and furnished 2-benzoylnathpho[2,1-b]furan 1, Nitration of ketone 1, under mild reaction condition, yielded 2-(3’,5’-dinitrobenzoyl)-3-nitronaphtho[2,1-b]furan 2, as evidenced by its mass spectrum. The reaction of the compound 2, with hydrazine hydrate, resulted in the formation of corresponding hydrazone 3. Various azines 4a-g were obtained when the hydrazone 3 was treated with, appropriate aldehydes by using different reaction condition in absence and in presence of hydrochloric acid as a catalyst. All the newly synthesized compounds have been characterized by analytical and spectral studies and were screened for antibacterial activity against Bacillus subtilus and Alcaligenes fecalies and antifungal activity against Aspergillus nidulans, Aspergillus parasiticus and Aspergillus terius.