5-Chloromethyl-8-quinolinol was condensed stoichiometrically with 5-(4-chlorophenyl)-(1,3,4) thiadiazol-2-ylamine in the presence of sodium bicarbonate. The resulting 5-[4-chlorophenyl-(1,3,4)thiadiazol-2-ylamino methylene]-8-quinolinol (CTAQ) was characterized by elemental analysis and spectral studies. The transition metal chelates viz. Cu2+, Ni2+, Co2+, Mn2+ and Zn2+ of CTAQ were prepared and characterized by metal-ligand (M:L) ratio, IR and reflectance spectroscopies and magnetic properties. The antifungal activity of CTAQ and its metal chelates was screened against various fungi. The results show that all these samples are good antifungal agents.