Abstract: Until recently the incidence of life-threatening fungal infections was considered to be too low to warrant extensive research, however over the last two decades infections caused by fungi have emerged as a growing threat to human health and there are studies indicating that the situation will become worse in the near future. Polyene antibiotics like nystatin and amphotericin B are widely employed for antifungal activities. Nystatin is used to clear candidosis and amphotericin B is useful in the treatment of deep-seated mycoses. Other polyene antibiotics like primaricin, hamycin, trichomycinare and candicidin have been used to a limited extent, for the treatment of localized mycotic infections. However, the polyene antibiotics especially aureofungin are less extensively used for the therapeutic treatment due to their toxicity and particularly less water solubility. The solubility of these antibiotics may play an important role in the enhancement of their therapeutic activity, keeping this view in mind, we have prepared water soluble amide derivatives of aureofungin, seven derivatives have been prepared and six of them were found to be active as antifungal agents when tested against Candida albicans. The structures of the derivatives were confirmed by UV and IR spectroscopy. The Minimum Inhibition Concentration (MIC) was found to be 1000 μg mL-1.