The silica supported silver nanoparticles (Ag@SG) were prepared by wet impregnation of silica gel (SG) using different concentrations of biogenic silver nanoparticles (AgNPs; 0.25–5 mM) solution, prepared from Cicer arientinum pod extract. Among them, the Ag@SG composite prepared by using 1.25 mM AgNPs solution (Ag1.25@SG) was found to contain only Ag0 species as nanoparticles, whereas the samples prepared by higher concentrations contained Ag0 as well as Ag+ (silver oxide) species. All the Ag@SG composites including SG, exhibited good adsorption capacity for a cationic dye (methylene blue; MB) in water. However, Ag1.25@SG having only Ag0 species exhibited higher photocatalytic activity for degradation of MB under visible light irradiation as compared to other composites. The study reveals that the plasmonic Ag0 species supported on silica are catalytically more active than Ag+ species. Furthermore, the AgNPs (Ag0) in supported form exhibits much higher (∼5-fold) photocatalytic activity than unsupported AgNPs. The synergistic effect of adsorption property of silica surface and plasmonic photocatalytic activity of AgNPs in the synthesized composites was found to be effective for the removal of MB. In addition, the fine dispersion of AgNPs on internal surface of silica provides better activity for photocatalysis. The study shows that this material is a promising adsorbent as well as photocatalyst for the removal of dyes from water.