Arylsydnone 1 a-b is ring transformed to 1,3,4-oxadiazole 2 a-b and further converted to 1,2,4-triazolones 3 a-b. Condensation of compound 3 a-b with aromatic aldehydes followed by reduction yielded a secondary amine derivative 5 a-d. Subsequent reaction of compound 5 a-d with formaldehyde and various secondary amines in presence of an acid catalyst afforded mannich bases 6 a-p. Single crystals of the intermediate compounds (Schiff bases) 4 a and 4 b are obtained and confirmed by x-ray crystallographic studies. All the final compounds are tested for anti-tubercular and anti-fungal activity. Almost all compounds have exhibited good pharmacological activity. In anti-tubercular activity, especially compounds 6 d and 6 f have shown excellent activities at the drug concentrations 3.12 μg/ml and 6.25 μg/ml respectively. While in antifungal activity against C. albicans, compounds 6 d and 6 m have exhibited good activities at the drug concentrations 6.25 μg/ml and 12.50 μg/ml where as in the antifungal activity against A. fumigatus, only the compounds 6 b and 6 g have exhibited promising activity at the drug concentration 0.20 μg/ ml.