A novel synthesis of 2-hydroxy-N- (2, 41-dioxospiro[indoline-3, 21-thiazolidin]-31-yl)benzamide derivatives was synthesized by cyclization of isatin hydazones with thioglycollic acid. The synthesized compounds were characterized by spectral data (IR, 1HNMR, MASS) and evaluated for anti-bacterial activity against various strains of bacteria at the concentrations of 200 μg/ml. Among the tested compounds VI (i)is highly active against E. coli, VI (f) is active against B. subtilis, VI (l) is active against S. aureus and VI (c) is active against S. typhi.