The study investigates the potential of Rhizoclonium hieroglyphicum as a novel source for synthesizing nickel oxide nanoparticles (RH-NiONPs) and evaluates its biological applications. Phytochemicals in the algal extract serve as capping, reducing and stabilizing agent for nickel oxide nanoparticles. The process variables were optimized using BBD based RSM to obtain maximum RH-NiONPs. Characterization of RH-NiONPs using UV-Vis and FT-IR spectroscopy reveals the plasmon resonance peak at 340 nm and the functional groups responsible for reduction and stabilization. XRD confirmed the crystalline nature while the stability and size of the RH-NiONPs were determined by DLS and zeta potential. Toxicity assessments demonstrated the effect of RH-NiONPs against Vigna radiata, Allium cepa and Artemia salina was low. RH-NiONPs revealed significant zone of inhibition against the selected bacteria and fungi. The results of larvicidal activity showed that RH-NiONPs are toxic to 4th instar larvae of Daphnis nerii. Also, RH-NiONPs efficiently decolorized Reactive Violet 13 (92%) under sunlight irradiation and the experimental data well fits to Langmuir isotherm along with pseudo second order kinetic model. The thermodynamic studies enunciate the exothermic and non-spontaneous photocatalytic decolorization of reactive violet 13. Thus, the current study assesses the eco-friendly and cost-effective nature of RH-NiONPs along with its biological applications.