In the present investigation, an alluring green PEG‐400 mediated one‐pot synthesis of novel 2‐(2‐hydrazinyl)thiazole derivatives from 1,2,6,7‐tetrahydro‐8H‐indeno[5,4‐b]furan‐8‐one has been unveiled via a novel synthetic pathway. The application of PEG in organic reactions as a reaction media is one of the fantastic tools of green chemistry as reactions can be carried out under generous conditions limiting environmental peril and chemical waste. PEG‐400 is recognized as a low‐cost, non‐flammable, environmentally benign, recyclable, and richly available green solvent. A series of novel 2‐(2‐hydrazineyl)thiazole derivatives have been synthesized in good to excellent yield by using the green capability of PEG‐400 solvent. These newly synthesized compounds were tested for their antimicrobial and antioxidant activities. The results revealed that these compounds show good activities compared with the standard. Additionally, all the synthesized compounds exhibit negligible cytotoxicity as compared to the positive control. The structures of all novel compounds reported herein are established using FT‐IR, 1H NMR, 13C NMR, D2O exchange experiment and HRMS techniques.