In this study, Phyllanthus emblica (amla) seed extract was employed to biosynthesize Aluminum oxide nanoparticles (Al2O3 NPs) as efficient stabilizers and bio-reducing agents. The successful synthesis of Al2O3 NPs was confirmed and characterized by UV–Vis spectroscopy (UV/Vis), Fourier Transform Infrared Spectroscopy (FT-IR), scanning electron microscopy (SEM) and X-ray diffraction spectroscopy (XRD). Antibacterial activity of these environmental friendly Al2O3 NPs was evaluated through a disk diffusion method, demonstrating their potential as antimicrobial agents against pathogens, including gram-positive and gram-negative bacteria. Additionally, Al2O3 NPs exhibited substantial photocatalytic activity, achieving a remarkable 95.06% degradation of 4-nitroaniline (4-NA) under UV light irradiation. Furthermore, Al2O3 NPs served as efficient catalysts in catalytic biomass pyrolysis, boosting bio-oil yields by 47.4%. The resulting bio-oil was analyzed using FT-IR spectroscopy. This research emphasizes the significance of biomass waste in producing biofuel as well as disinfection and environmental remediation applications, offering sustainable solutions for various challenges.