A novel ligand, namely, (N’,N’’’-((1E,2E)-1,2-diphenylethane-1,2-diylidene)bis(3-allyl-2-hydroxybenzohydrazide) (H2DBAZ), was designed and synthesized. This ligand demonstrated the ability to successfully interact with Tb(III) ions, resulting in the formation of a chemosensor that exhibited luminescent properties. The novel ligand was produced and subsequently subjected to characterization with several analytical techniques, including mass spectroscopy, elemental analysis, Fourier-transform infrared spectroscopy (FTIR), and proton nuclear magnetic resonance spectroscopy (1H NMR). The postulated chemical structure of the Tb(III)–(DBAZ) complex was assessed utilizing a molar ratio approach. The chemosensor exhibited both selectivity and sensitivity towards malathion when compared to other nine organophosphorus pesticides that were investigated in methanol. The method was based on the phenomenon of luminescence static quenching shown by the complex subsequent to its interaction with the malathion pesticide. A linear Stern–Volmer plot was seen and, subsequently, utilized to generate the calibration curve. The observed linear range spanned from 0.39 to 60 µM, with a strong correlation coefficient of 0.999. Additionally, the limit of detection (LOD) was determined to be 0.118 µM. This methodology was successfully employed to measure the presence of malathion in various water samples. This particular complex exhibited promising potential for application in the development of a chemosensor utilizing the molecularly imprinted polymer approach.