Conglomerate nanocomposites comprising metal and metal oxide hold significant potential for exhibiting properties that surpass the combined characteristics of their individual components, owing to the interactions occurring at the interfaces between the metal and metal oxide elements. In this study, we present the synthesis of Cu2O nanoparticles (NPs) (with diameters ranging from 40 to 53 nm) and Ag-Cu2O nanocomposites using an aqueous solution method at room temperature, employing varying concentrations of Ag NPs. Through optical absorption studies, we determined the optical band gap of Cu2O NPs in 0.5Ag-Cu2O, 1Ag-Cu2O, and 1.5Ag-Cu2O nanocomposites samples to be 2.13 eV, 2.25 eV, 2.34 eV, and 2.41 eV, respectively. The x-ray diffraction data are analysed using the Williamson–Hall technique and revealed noteworthy variations in microstructural characteristics such as strain and stress within the Cu2O nanocrystallites fabricated under different Ag concentrations. The nanocomposites amplified the intensities of violet-blue, blue, and green photoluminescence (PL) emissions, attributable to the interfaces between Ag and Cu2O, lattice mismatches, and the induced microstructural parameters lattice strain, and stress of Cu2O nanocrystallites. The enhanced PL intensities can be attributed to the influence of the local electric field on the Ag core composites. The Ag-Cu2O nanostructure exhibits potential applications in water purification technologies, while the PL emission properties and low band gap (∼2.13 eV) hold promising applications in optoelectronic devices. The antibacterial activities of Cu2O and Ag-Cu2O nanomaterials against Enterococcus faecalis and Escherichia fergusonii are examined using MH agar well plate diffusion methods. Here, Ag NPs enhance bactericidal effectiveness through enhanced interaction with bacteria and the release of Ag+ ions, while the Cu2O shell discontinuity on Ag NPs contributes to their unique antibacterial properties.