This review article explores the synthesis and diverse reactions of ethyl-2-benzothiazolyl acetate and its corresponding hydrazide derivatives. The study presents a comprehensive investigation into various synthetic methodologies, demonstrating the versatility of these compounds in generating diverse chemical entities. The synthesis of ethyl-2-benzothiazolyl acetate involves several methods, including reactions with 2-aminothiophenol, ethyl cyanoacetate, ethyl ethoxycarbonylacetimidate hydrochloride, and diethyl malonate. Additionally, cyanomethylene benzothiazole can be converted to ethyl-2-benzothiazolyl acetate. These methods offer various pathways to achieve the desired compound with notable yields. Furthermore, detailed synthesis of 2-benzothiazolyl acetohydrazide from ethyl-2-benzothiazolyl acetate through reactions with hydrazine hydrate or by reacting 2-aminothiophenol with cyanoacetohydrazide was also descried. The subsequent derivatization of 2benzothiazolyl acetohydrazide and its derivatives through various reactions highlights the potential for creating diverse chemical scaffolds. The study explores the reactions of these compounds with various reagents, including aromatic aldehydes, 1,2,4-triazole, cinnamyl alcohol, hydroxybenzaldehyde, and more. The resulting compounds exhibit a range of structural and functional diversity. Moreover, the review systematically examines the diverse biological activities demonstrated by these compounds. The exploration of these activities extends to their potential applications in various fields, such as pharmaceuticals, and materials science. Additionally, the synthesis of fluorescent sensors and potential inhibitors for enzymes is discussed.