In the present study, some thiadiazole derivatives have been synthesized by incorporating azetidinyl and thiazolidinyl moieties at its 2-position such as 5-(p-methoxyphenyl)-[2-substituted benzylidenylimino] 1,3,4-thiadiazole 2(a-e), 5-(p-methoxyphenyl)-[2-(3'-chloro-2'-oxo-4'-substituted aryl-1'-azetidinyl)]-1,3,4-thiadiazole 3(a-e) and 5-(p-methoxyphenyl)-[2-(2'-substituted aryl-4'-oxo-1,3%,thiazolidin-3'-yl)]-1,3,4-thiadiazole 4(a-e). The structure of these compounds have been elucidated by elemental analysis (C, H, N) and IR. (1)H NMR, mass spectroscopic techniques. Further, these compounds were subjected to screening for antifungal activities against Candida albican ATCC 10231, Aspergillus niger ATCC 9029, Candida tropicalis ATCC 28775, Candida krusei ATCC 6258 and Candida parapsilosis ATCC 22019. Compound 4e showed good antifungal activity against C. albican ATCC 10231 and C. krusei ATCC 6258 with MIC 1.562 mu g/mL.