Inorganic CsPbI2Br perovskites, derived from cesium, hold potential for use in solar and optoelectronic devices. This study utilized density functional theory calculations to investigate the structural, phonon, electronic, optical, photovoltaic, thermoelectric, thermodynamic, and photocatalytic properties of CsPbI2Br. The phase stability of our compound is thoroughly researched, and it is confirmed that all are thermodynamically and dynamically stable. Formation energy is employed to confirm thermodynamic stability while phonon dispersion is used to confirm dynamical stability. We have computed the electronic properties of CsPbI2Br, such as PDOS, TDOS, and its band structure. The results indicate that the material is a p-type semiconductor which has a direct gap value of 1.50 eV and 1.92 eV using GGA-PBE and TB-mBJ respectively. Higher absorption coefficient, optical conductivity, reflectivity and other optical properties of the CsPbI2Br compound indicate better absorption in the visible spectrum. This distinguishes this substance as an exceptional candidate for optoelectronic devices. Improved utilization of CsPbI2Br in thermoelectric devices is evident from the power factor PF, Seebeck coefficient, figure of merit, and other thermoelectric properties. CsPbI2Br is advantageous in the solar industry due to its external quantum efficiency, open-circuit voltage of 1.92 V, and short-circuit current of 19.67 mA.cm−2. Additionally, the study examined the compound’s thermodynamic properties and examined how the temperature affected its entropy, free energy, enthalpy and heat capacity. Furthermore, it meets the thermodynamic necessary conditions to initiate the water-splitting reaction; the CsPbI2Br compound demonstrates strong photocatalytic performance. This implies that CsPbI2Br may open up new avenues for thermoelectric and optoelectronic experimentation.