5-Nitro-1-benzofuran-2-carbohydrazide 2 was prepared by condensation of Ethyl-5-Nitro-1-bnzofuran-2- carboxylate 1 and hydrazine hydrate in Ethanol. The reaction of the 2 with various aromatic aldehydes to give 5-Nitro-N’-[aryl methylidene]-1-benzofuran-2-carbo hydrazide 3 which on cyclization with chloramine-T furnished 2-(5-Nitro-1-benzofuran-2-yl)-5-aryl-1,3,4-oxadiazole 4. The newly synthesized compounds have been characterized by IR, 1H NMR, MASS Spectra. The synthesized compounds were screened for antimicrobial activity. The purity of synthesized compound was confirmed by TLC.