The present work presents a novel copper hydroxide-molybdenum diselenide-carbon nitride (3 % Cu(OH)2/MoSe2-g-C3N4, (3CM-CN)) ternary nanocomposite catalyst. This catalyst was synthesized using a three-step process: hydrothermal synthesis, ball milling, and wet impregnation. The focus of this research is on the hydrogen generation (H₂) capabilities of this novel material. The catalyst was extensively characterized using various analytical techniques, including X-ray diffraction (XRD), scanning electron microscopy (SEM), ultraviolet–visible (UV–Vis) spectroscopy, photoluminescence (PL) spectroscopy, and X-ray photoelectron spectroscopy (XPS), resulting in a comprehensive understanding of its structure, morphology, optical properties, and surface composition. The catalytic activity and mechanism of Cu(OH)2/MoSe2-g-C3N4 composites were investigated. The ternary nanocomposite catalyst significantly enhanced hydrogen production, achieving rates 7.7 times greater than g-C3N4 and 4 times greater than 3 % Cu(OH)2/MoSe2 (3CM). Its maximum production reached an impressive 3012 µmol g−1 h−1. The analysis demonstrated a significant increase in active sites on the composite’s surface, accompanied by an increase in the composite-specific surface area to 73 m2/g. The development of a ternary nanocomposite led to a higher rate of catalyst production for hydrogen generation while simultaneously decreasing the rate of electron-hole recombination. It gave an innovative strategy for constructing highly efficient composite catalysts for hydrogen generation very effectively.