In this work, a facile, one-pot greener route has been employed to synthesize 2-substituted quinazolin-4(3H)-one derivatives from isocyanide-based Pd catalyst. The synthesized compounds have been characterized by FT-IR, 1H NMR, 13C NMR and LC MS. These compounds have shown reasonably good antibacterial and antifungal activities when compared to standard drugs. The molecular docking studies also suggest the framework of synthesized compounds with DNA gyrase enzyme, compounds (3a, 4a, 5a, 6a and 7a) have shown stronger inhabitance on DNA gyrase when compared to standard antibiotic drug chlorobiocin. This synthetic approach has a variety of important features such as involvement of comparatively less synthetic steps and excellent yield. 2-substituted quinazolin-4(3H)-one derivative has drawn attention because of their unique skeleton and interesting biological applications.