Perovskite barium titanate (BaTiO3) has received a lot of interest due to its extraordinary dielectric and ferroelectric properties, along with its moderate biocompatibility. Here, we investigated how Zn doping tuned the physicochemical characteristics, photocatalytic activity, and anticancer potential of BaTiO3 nanoparticles synthesized from banana peel extract. XRD, TEM, SEM, EDS, XPS, BET, Raman, and PL were utilized to characterize the as-synthesized pure and Zn (1 and 3 mol%)-doped BaTiO3 nanoparticles. All of the synthesized samples showed evidence of the BaTiO3 tetragonal phase, and the XRD patterns of the Zn-doped BaTiO3 nanoparticles showed the presence of a Zn peak. The particle size of BaTiO3 decreased with increasing levels of Zn doping without morphological changes. After Zn doping, the PL intensity of BaTiO3 decreased, suggesting a lower electron–hole recombination rate. BET analysis found that the surface area of Zn-doped BaTiO3 nanoparticles was higher than that of pure BaTiO3. Under visible irradiation, the photocatalytic activity of pure and Zn-doped BaTiO3 nanoparticles was compared, and a remarkable 85% photocatalytic activity of Zn (3%)-doped BaTiO3 nanoparticles was measured. As a result, Zn-doped BaTiO3 nanoparticles are recognized as excellent photocatalysts for degrading organic pollutants. According to cytotoxicity data, Zn (3%)-doped BaTiO3 nanoparticles display four-fold greater anticancer activity against human lung carcinoma (A549) than pure BaTiO3 nanoparticles. It was also observed that Zn-doped BaTiO3 nanoparticles kill cancer cells by increasing the intracellular level of reactive oxygen species. Furthermore, compared to pure BaTiO3, the Zn-doped BaTiO3 nanostructure showed better cytocompatibility in non-cancerous human lung fibroblasts (IMR90). The Zn-doped BaTiO3 nanoparticles have a reduced particle size, increased surface area, and a lower electron–hole recombination rate, which are highly beneficial for enhanced photocatalytic and anticancer activity. Overall, current data showed that green-fabricated Zn-BaTiO3 nanoparticles have superior photocatalytic and anticancer effects along with improved biocompatibility compared to those of pure BaTiO3. This work underlines the significance of utilizing agricultural waste (e.g., fruit peel) for the fabrication of BaTiO3-based nanostructures, which hold great promise for biomedical and environmental applications.