A new benzothiazole derivative, benzothiazol-2-yl-malonaldehyde (BTM) was synthesized and its biological potency has been investigated in terms of its anti-bacterial activity. Its interaction with bovine serum albumin (BSA) and DNA cleavage studies were also carried out. The interaction between BSA and BTM was studied by multi-spectroscopic approach, which included spectrofluorimetry, CD spctrophotometry and FTIR. The experiments were carried out at three different temperatures and the quenching mechanism was observed to be both static as well as dynamic. The binding was found to be moderate as evident by its binding constant values (of the order of 103). A single binding site was observed and site marker experiments showed site III of BSA for BTM. The negative values of ΔG0 suggested the spontaneity of the interaction and positive values for both ΔH0 and ΔS0 indicated that the nature of interaction was hydrophobic. The CD and FTIR studies revealed that the secondary structure of BSA has been altered upon binding of BTM. BTM cleaved the super-coiled DNA in the presence and absence of hydrogen peroxide at micro-molar concentration. It was also found from the antibacterial activity that BTM showed better activity against gram-negative bacteria Pseudomonas aeruginosa than the other bacterial stains used for the study.