The diazotization reaction between diazonium salt of 2-Amino-5-phenyl-[1,3,4]-Oxadiazole (APO) and Salicylic acid (SA) was give 2-hydroxy-5-((5-phenyl-1,3,4-oxadiazol-2-yl)diazenyl) benzoic acid (DAPOSA). The novel ligand was characterized by elemental analysis and spectral studies. The transition metal chelates viz. Cu2+, Ni2+ , Co2+ , Mn2+ and Zn2+ of DAPOSA were prepared and characterized by metal-ligand (M:L) ratio, IR and reflectance spectroscopies and magnetic properties. The antifungal activity of DAPOSA and its metal chelates was examined against various fungi.