Silver nanoparticles (AgNPs) continue to attract interest due to their potential applications in biomedicine, especially in relation to their antibacterial and anticancer properties. In this respect, it is important to develop biosynthesis techniques that are environmentally friendly and include new sources. This is the first report on microwave-assisted green synthesis of silver nanoparticles using Erica manipuliflora Salisb. (E.m AgNPs). In this study, the anti-cancer and antibacterial activity of E.m AgNPs and E. manipuliflora extracts were evaluated. Characterization of E.m AgNPs were performed using UV–Vis spectroscopy FT-IR, XRD, SEM and TEM analyses. The UV–Vis absorption spectrum showed the characteristic peak of E.m AgNPs at λmax = 425 nm. The SEM and TEM results indicated that the nanoparticles were spherical and ranged in size from 2.45 to 9.95 nm. The antibacterial results, it was determined that E.m AgNPs (50 mg mL−1) (8.4–21.1 mm ZOI) caused more effective inhibition on both gram positive (Bacillus subtilis, Staphylococcus aureus, Enterococcus faecalis) and gram negative (Escherichia coli) bacteria compared to all plant extracts (50 mg mL−1) (8.13–17.16 mm ZOI). Among the cancer (MCF-7 and HT-29) and healthy (HaCaT and HEK-293) cell lines, E.m AgNPs exhibited the highest cytotoxicity against MCF-7 cells (IC50: 87.22 μg mL−1). The hexane extract was the most effective inhibitory extract on cell proliferation of all cell lines and showed the highest cell inhibition in MCF-7 cells (IC50: 43.06 μg mL−1). The results revealed that both E.m AgNPs and E. manipuliflora extracts showed promising antibacterial activity against pathogenic bacterial strains and had potential anticancer activity.