Under various reaction conditions, Tetraphosphorus decasulphide P4S10 and Lawesson's reagent LR interacted with 2-cyano-N-[(2-hydroxyphenyl) methylidene] acetohydrazide (1) to synthesize a new 1,3,2λ5-diazaphosphinane derivatives 2–4. The three novel compounds 2−4 have been synthesized and characterized by elemental and spectral analyses (UV–Vis, FT-IR, MS, and 1H–NMR) throughout the current inquiry. The ground state energies, harmonic vibrational wavenumbers, and ground state geometries of the investigated compounds 2−4 were optimized by applying the density functional theory (DFT) at the B3LYP level, utilizing 6–311++G (d, p) basis sets. The first principal study has been investigated for the electronic properties, molecular electrostatic potentials, and quantum chemical identities. There was a noticeable shift in intramolecular charge from the occupied to the empty molecular orbitals. Time-dependent density functional theory (TD-DFT) and the CAM-B3LYP/6–311++G (d, p) function was used to conduct the UV–Vis analysis. A few bacterial and fungal strains were used to test the antimicrobial activities. The stability of the molecule resulting from hyper conjugative interactions that cause its nonlinear optical activity and charge delocalization was investigated using a natural bond orbital approach. The Mullikan atomic charge and molecular electrostatic potential are also anticipated. The value of the HOMO-LUMO energy gap indicates the possibility of charge transfer within the molecule. Compound 4 is the most reactive, with an energy difference between the border orbital of ΔEgap = 2.97 eV, according to analysis of the global descriptors. In addition, compared to the other 2 and 3 compounds under study, compound 4 is the softest, least stable, and has the largest electronic exchange capacity. Examined the structure-activity relationship using DFT calculations (SAR) and compared the findings with real-world antimicrobial outcomes for compounds 2–4. Also, Drug-likeness and In silico ADME studies were performed.