The title compound was synthesized by reacting 2-hydroxy-4-methoxy-benzaldehyde with diethyl malonate in the presence of catalyst piperidine. The compound was characterized by elemental analysis, FT-IR, H-1-NMR, and C-13-NMR. The structure was confirmed by single crystal X-ray diffraction technique. The compound crystallizes in the monoclinic crystal system, P2(1)/n space group with unit cell parameters a = 7.8824(7) angstrom, b = 13.5854(10) angstrom, c = 20.6072(16) angstrom, beta = 98.786(3)degrees, and Z = 8. The molecular and crystal structure of the title compound are stabilized by inter- and intramolecular interactions of the type C-H center dot center dot center dot O. This newly synthesized compound was screened for antibacterial activity with two Gram positive and three Gram negative bacteria.