Abstract2‐Hydroxy‐naphthaldehyde based heterocyclic Schiff base derivatives (1 a‐1 h) were prepared and characterized by multi‐spectroscopic techniques and elemental analysis. Antibacterial activity of all the compounds was tested against Streptococcus pneumoniae, Enterococcus faecalis, Pseudomonas aeruginosa, Salmonella enterica, Klebsiella pneumoniae and Escherichia coli bacterial strains. The antifungal potential of the synthesized compounds was also tested against three Candida strains (Candida albicans, Candida glabrata and Candida tropicalis). In the antibacterial activity, the compounds showed high MIC values and thus found less potent against all the tested bacterial strains. Interestingly, compounds 1 b and 1 c exhibited significant activity with MIC 125 μg/ml against all the tested fungal strains. Hemolytic assay against human RBCs revealed that compounds 1 b and 1 c showed less toxicity than the standard drug fluconazole at each tested concentration (25‐1000 μg/ml). In growth kinetics studies, compounds 1 b and 1 c significantly inhibited the growth of Candida cells at 2MIC and MIC concentrations. The interaction ability of lead compounds (1 b and 1 c) with Ct–DNA was carried out by absorption, fluorescence, hydrodynamic, cyclic voltammetery measurements and circular dichroism. Results suggested that compound 1 b and 1 c bind to Ct–DNA via an intercalative mode supported by molecular docking studies. The antioxidant potential of heterocyclic derivatives 1 b and 1 c was estimated by DPPH free radical and hydrogen peroxide assay which confirm that compounds exhibited significant antioxidant activity.