Reaction of Oxindole with benzaldehyde derivatives gave 3-hydroxy-3-phenyl oxindole derivative (6), dehydration of (6) gave 3-phenylidene-2-indolinone derivative (7).Reaction of (7) with sarcosine and acenaphthenequinone yielded novel spirooxindole derivatives which are characterized by various spectral methods. The compounds were subjected to antibacterial and antifungal studies and the results are very promising.