In this report, photochemical synthesis of monodispersed gold (Au) and silver (Ag) nanoparticles (NPs) was reported using cholic acid functionalized star poly(DL-lactide) (CA-(PDLLA)) as a capping and reducing agent. CA-(PDLLA) was synthesized by ring-opening polymerization (ROP) of DL-lactide with a feed ratio of 1:120 (cholic acid: DL-lactide). The molecular weight of CA-(PDLLA) was measured by using the gel permeation chromatography (GPC) technique. The thermal properties of the polymer and its nanocomposite materials were studied by thermogravimetric analysis (TGA). The optical properties of Ag and Au NPs were studied by UV–visible absorption spectroscopy. Morphological studies and size of the polymer-nanocomposites were assessed by using field emission scanning electron microscopy (FE-SEM) and high-resolution transmission electron microscopy (HR-TEM) techniques. The percentage composition of Au and Ag present in the polymer-nanocomposites was calculated using energy-dispersive X-ray spectroscopic (EDX) analysis. Finally, the synthesized polymer-metal nanocomposites were used as heterogeneous catalysts for the reduction of 4-nitrophenol (4-NP) to 4-aminophenol (4-AP) as a model reaction and the apparent rate constant (kapp) values of CA-(PDLLA)-AuNPs and CA-(PDLLA)-AgNPs were found to be 5.76 × 10−4 s−1 and 19.7 × 10−4 s−1, respectively.