The present work aimed to produce silver nanoparticles using an agro-waste fruit peel extract from Pithecellobium dulce (Roxb.) Benth (PD) and examine their antibacterial, antioxidant, and anticancer characteristics. The synthesized silver nanoparticles (PD-AgNPs) were validated by the characteristic dark brown hue and surface plasmon resonance at 417 nm. Fourier transform infra-red spectrum pinpoints the important functional groups in charge of their reduction and capping. The X-ray diffraction pattern and transmission electron microscopic images confirmed the face-centred cubic crystal structure and spherical-shaped PD-AgNPs. Particle size and stability of the PD-AgNPs were found to be 83.90 and −31.2 mV respectively. Antibacterial experiments against E. coli, K. pneumoniae, B. subtilis, and S. aureus showed concentration-dependent inhibitory effects. In various assays, including those for DPPH, hydroxyl, superoxide anions, and ABT radicals, PD-AgNPs exhibited strong free radical scavenging abilities when compared with vitamin C. In the MTT experiment, PD-AgNPs displayed dose-dependent cytotoxicity against MG-63 cells with an IC50 of 22.09 µg/mL. Additionally, the anticancer potential of PD-AgNPs was studied by measuring mitochondrial membrane potential and apoptosis. The potential of PD-AgNPs for utilization in biomedical applications was established by their antibacterial, antioxidant, and anticancer characteristics. The study emphasizes the importance of green synthesis methodologies in creating multifunctional nanoparticles with therapeutic potential, which warrants further investigation for practical medical applications.