The paper describes the synthesis, characterization data, and biological activity (antibacterial, antifungal, and brine shrimps lethality) of new azetidin‐2‐ones. The compounds have been synthesized by the reaction of diarylketenes, generated in situ from thermal decomposition of the 2‐diazo‐1,2‐diarylethanones, with N‐(1‐methyl‐1H‐indol‐3‐yl)methyleneamines. The compounds have been characterized by elemental analysis and spectral (IR, 1H and 13C NMR, and MS) data. The paper also reports the results of antibacterial, antifungal, and brine shrimps lethality assays of these compounds. Some of the compounds exhibited significant biological activity.