Various substituted 3-chloro-4-(substitutedphenyl)-1-{4-[7-chloro-2-(3-chloropropyl)-4-oxoquinazolin-3(4H)- yl}azetidin-2-ones (2a-j) containing different functional groups have been synthesized by treating 7-chloro-2-(3- chloropropyl)-3-{4-[(substitutedbenz- ylidene)amino]phenyl}quinazolin-4-(3H)-ones (1a-j) with chloroacetyl chloride in presence of triethyl amine at reflux temperature. The lead compounds were characterized by melting point, TLC, calculated elemental analysis, IR and 1H NMR spectral studies. The compounds were tested for antimicrobial studies and showed significant activity at low and high concentration as compared to standard.