Quinazolinones are building blocks for approximately 150 naturally occurring alkaloids isolated from a number of families of the plant kingdom, from animals and microorganisms. Quinazolinones are also a class of drugs which function as hypnotic/sedative that contain a 4- quinazolinone core. In recent years, 7-azaisatins have received considerable interest in view of their potential relationship to pharmacologically important indoles and purine nucleus, and also because of their interesting biological activities. Hence a new azaisatin derivatives containing 4(3H)-quinazolinones has been designed and synthesized. Their structures have been elucidated on the basis of elemental analysis and spectral studies. All the compounds synthesized were screened for their CNS activity (Sedatives & Hypnotics) which exhibited some authentic results towards testing organism invitro and invivo studies.