This study presents a sustainable method for synthesizing silver nanoparticles (Ag NPs) using green Carica papaya extract (CPE) as a reducing and stabilizing agent. The green synthesis minimizes environmental impact and utilizes bioactive compounds in Carica papaya (CP), offering an economical and sustainable alternative. The goal is to employ CPE for the eco-friendly synthesis of Ag NPs, followed by comprehensive characterization, antibacterial evaluation, cytotoxicity against brine shrimp, and examination of bioelectricity generation. Locally sourced CP was boiled in deionized water, then cooled and filtered twice. The bio-reduction of silver ions to Ag NPs was confirmed by a color change when 45 mL of 0.005 M AgNO3 was mixed with 5 mL of CPE. Characterization through UV–vis absorption spectrophotometry (UV), X-ray diffraction (XRD), Fourier-transform infrared spectroscopy (FTIR), Field emission scanning electron microscopy (FESEM), Energy dispersive X-ray spectroscopy (EDX), Transmission electron microscopy (TEM), and Gas chromatography-mass spectrometry (GC–MS) analysis confirms the successful formation and consistent size distribution of Ag nanoparticles. CPE is a crucial reducing agent, as evidenced by a distinct UV-visible peak at 422 nm. X-ray crystal analysis verifies highly crystalline Ag NPs with a face-centered cubic lattice structure. The d-spacing values in SAED images are consistent with the results obtained from XRD. Antimicrobial effectiveness against Escherichia coli and Staphylococcus epidermidis is demonstrated. The study explores the bioelectricity generation potential of CPE-synthesized Ag NPs, indicating promising prospects for sustainable energy solutions. Preliminary experiments show the ability of the nanoparticles to catalyze bio-electrochemical reactions. This dual-benefit study underscores CPEs role in antibacterial properties and bioelectricity generation, laying the groundwork for further research in sustainable nanotechnology applicable to healthcare and energy sectors and contributing to the advancement of environmentally friendly technologies.