A new series of 3‐(arylaminomethyl)‐5‐(5‐methyl‐1‐phenyl‐1H‐4‐pyrazolyl)‐2,3‐dihydro‐1,3,4‐oxadiazole‐2‐thiones 6a, 6b, 6c, 6d, 6e, 6f, 6g, 6h, 6i, 6j has been synthesized by the reaction of 5‐(5‐methyl‐1‐phenyl‐1H‐4‐pyrazolyl)‐1,3,4‐oxadiazol‐2‐ylhydrosulfide 5 with formaldehyde and corresponding anilines. The chemical structures of newly synthesized compounds were elucidated by IR, 1H, 13C‐NMR, MS, and elemental analyses. The compounds 6a, 6b, 6c, 6d, 6e, 6f, 6g, 6h, 6i, 6j were evaluated for their antibacterial activity against three representative Gram positive bacteria viz. Bacillus subtilis (MTCC 441), Bacillus sphaericus (MTCC 11) and Staphylococcus aureus (MTCC 96), and three Gram negative bacteria viz. Pseudomonas aeruginosa (MTCC 741), Klobsinella aerogenes (MTCC 39) and Chromobacterium violaceum. Among the screened 6b, 6d, 6i, and 6j in which oxadiazole moiety bearing 4‐fluoroanilinomethyl, 4‐chloroanilinomethyl, 2‐trifluoromethylanilinomethyl, and 2,5‐difluoroanilinomethyl groups, respectively, showed high activity against all the microorganisms used. In addition these compounds were also screened for their antifungal activity against four fungal organisms viz. Candida albicans (ATCC 10231), Aspergillus fumigatus (HIC 6094), Trichophyton rubrum (IFO 9185), and Trichophyton mentagrophytes (IFO 40996). Most of these new compounds showed appreciable activity against test fungi, and emerged as potential molecules for further development.