Bismuth telluride is currently the most outstanding thermoelectric (TE) material near room temperature, and the high demand for solid-state refrigeration and low-grade waste heat recovery means there is an urgent need to improve its TE performance. This study investigates the enhanced TE performance of Bi0.4Sb1.6Te3 through the addition of Ag2Se. The introduction of Ag promotes an acceptor doping effect, leading to increased carrier concentration, while inhibiting lattice thermal conductivity together with Se doping. As a result, a notable enhancement in the figure of merit (ZT) to 1.35 at 373 K is achieved, with an average ZT of 1.17 spanning temperatures from 300 K to 523 K. More significantly, a 7-pair TE module was integrated using p-type Bi0.4Sb1.6Te3-0.00125Ag2Se and n-type extruded BiTeSe for cooling and power generation. A competitive conversion efficiency of 5.54 % at a temperature difference of 230 K and a maximum cooling temperature difference of 63.1 K at Th = 300 K are achieved, demonstrating the enormous practical application potential of this dual-mode module.