Ethyl 2-(3-formyl-4-hydroxyphenyl)-4-methyl-1,3-thiazole-5-carboxylate is prepared by the reaction of 4-hydroxybenzene-1-benzothioimide with ethyl 2-chloroacetoacetate. It has antibacterial and antifungal activities against Candida albicans. It can also be used as an intermediate of febuxostat.