Aurones [2-benzylidine-1-benzofuran-3(2H)-ones] and its derivatives constitute a class of heterocyclic compounds have an extensive applications in drug development containing benzofuranone molecule. Aurones have been isolated from various natural sources and have been reported for their potent Anticancer, antidiabetic, anti-inflammatory activities. Alkylating neoplastic agents such as nitrogen mustards interfere with cellular proliferation. Based on the above consideration we have synthesized around eight benzofuran derivatives containing nitrogen mustard and screened for their In-Vitro Cytotoxic activity. Synthesis of N-N {Bis(2’-chloroethylamino)-Nitroso}-2-benzylidene-1-benzofuran was carried out by reacting O-hydroxy acetophenones with substituted benzaldehyde in presence of aqueous NaOH and  was neutralized with 1N HCl to get chalcones, which was further refluxed with  a mixture of CuBr2 in DMSO and the reaction mixture was cooled, poured on ice-cold water to get aurones. Aurones was refluxed with hydroxylamine hydrochloride, sodium acetate trihydrate for 48 hours to get oxime, further treating with chloroacetyl chloride gave N-chloroacetyl-nitroso-2-benzylidene-1-benzofuran-3(2H)-one. This was further treated with Bis (2-chloroethyl) amine in pyridine to yield N-N {Bis(2’-chloroethylamino)-Nitroso}-2-benzylidene-1-benzofuran. The newly synthesized benzofuran derivatives were screened for their In-Vitro Cytotoxic activity against Breast cancer cell line. All the synthesized eight compounds showed mild to low cytotoxic activity.