A series of novel 4-aryl-5-phenylimino-3-S-hepta-O-benzoyl lactosyl-1,2,4-thiadiazolines have been synthesized by the interaction of S-hepta-O-benzoyl lactosyl-1-arylisothiocarbamides and N-phenyl-S-chloro isothiocarbamoyl chloride. These compounds were screened for their antibacterial and antifungal activities against Escherichia coli, Proteus vulgaris,. Salmonella, typhi, Staphylococcus aureus, Pseudomonas aeruginosa and Aspergillus niger. The newly synthesized compounds have been characterized by analytical and IR, H-1 INMR and Mass spectral studies.