Cerium oxide nanoparticles (CNP) have been produced using a wet chemical technique. The therapeutic capacities of cerium oxide nanoparticles are determined based on the analysis of their anti-diabetic and antibacterial activities. The study below demonstrated the antibacterial characteristics of cerium oxide nanoparticles (CNP) against several bacteria. Specifically, the inhibition zones observed for Staphylococcus aureus, Pseudomonas aeruginosa, Escherichia coli, and Enterococcus gergovae were 14.5mm, 11mm, 17mm, and 15mm, respectively. The results obtained indicate that CNP has the potential to address the urgent problem of hospital-acquired microbial infections, particularly those caused by antibiotic-resistant microorganisms. Additionally, the anti-diabetic property of CNP was evaluated and found to have a 66% alpha amylase inhibition, which suggests a significant reduction in glucose levels. Therefore, it has the potential to be utilized as an antidiabetic medication as well. The study has produced a compound with potent biological capabilities that can be enhanced through a synthesis technique and utilized in the pharmaceutical industry.