A new series of azetidinone derivatives have been synthesized due to the growing resistance of bacteria towards the รข-lactam antibiotics. In our present study Oxadiazole is synthesized from semicarbazide is on condensation with substituted aldehyde to form Schiff base. The schiff bases are cyclized with chloroacetylchloride in triethylamine to yield the corresponding 2-azetidinones. Structures of synthesized compounds are confirmed by physical & spectral analysis. The compounds have screened for antimicrobial activity.