This research successfully synthesized a single co-crystal of diisopropylammonium hydrogen squarate using prolonged vaporization for crystal growth. Single-crystal X-ray spectrometry confirmed its monoclinic structure, and morphological predictions were made. UV–visible spectroscopy revealed its optical transmittance with a direct optical energy band gap of 3.45 eV. Photoluminescence studies showed a strong violet emission at 402 nm when excited by a 260 nm source. Microhardness study examined the crystal's mechanical attributes portraying the normal indentation size effect followed by a qualitative overview of half-penny crack dynamics. FTIR study aided in the discernment of varied vibrational modes with NH stretching being observed at 3078 cm−1. Thermal examination further revealed the crystal's stability up till 244 °C. Proton and carbon-13 NMR spectra were analyzed to verify the presence of functional groups and the overall molecular integrity. Intermolecular interactions were analyzed using Hirshfeld surface and fingerprint mapping. The Z-scan technique demonstrated the crystal's applicative potential in its third harmonic generation capability. Theoretical calculations with Density Functional Theory (DFT) supported the experimental findings, offering insights into optimized geometries, frontier molecular orbitals, natural population and bond orbital distributions, hyperpolarizability, molecular electrostatic potentials, IR vibrational modes, and UV absorbance profiles.