AbstractIn this study, the density functional theory (DFT) method is used to theoretically investigate the nonlinear optical (NLO) properties of natural carbazoles. The selected carbazoles have significant NLO characteristics. Using the B3LYP/6‐311++G(d,p) and CAM‐B3LYP/6‐311++G(d,p) level theories, the linear optical absorption, HOMO‐LUMO energy gap, molecular electrostatic potential (MEP), and dipole moments were calculated. The first hyperpolarizability (β0), second hyperpolarizability (γ), and static and dynamic linear polarizability (α0) components were computed. Electron correlation was obtained, which was compared with NLO and docking studies showing good relation with both. All carbazole compounds demonstrate good optoelectronic qualities that promote their potential use in electronic devices, as demonstrated by the frequency‐dependent dynamic hyperpolarizabilities of the B3LYP/6‐311++G(d,p) and CAM‐B3LYP/6‐311++G(d,p) functionals at 532 and 1064 nm wavelengths. The results of the molecular docking study shows that CBZ molecules exhibit a strong affinity for both Malassezia globosa (SMG1) lipase targets. The docking data demonstrated a strong binding ability, with CBZ7 and CBZ3. This indicates that CBZ7 and CBZ3 outperform all other compounds and have a high binding capability to the target protein.