The profound contamination of reservoirs triggered by industrial dyes and the growing phenomenon of antibiotic-resistant bacteria present substantial risks to both the environment and human health. Conventional approaches to water treatment and microbiological disinfection can frequently become ineffective, expensive, and detrimental to the environment, and this issue underscores the need for novel materials that possess refined photocatalytic and antibacterial characteristics that thrive efficiently in a setting of visible light. An innovative nanostructured nanocomposite, Mo-CeO2@C, was synthesized using a green chemistry method coupled with Mo-CeO2 nanoparticles and pristine CeO2. The impact of Ce, Mo, and carbon-based nanocomposites has been validated by leveraging XRD, FTIR, UV–vis spectra, and FE-SEM/EDX. The sunlight-mediated photodegradation performance of carbon-based nanocomposite exhibited a superior photodegradation efficiency of 99.5 %, higher than others. The photocatalytic activity of M.B. dye concentration, catalyst dosage, scavenger test, and recyclability were also conducted, which confirm the optimal catalyst loading of 20 mg, dye concentration 40 ppm, and pH 8 with reusability up to sixth cycles. The carbon-coated doped nanocomposite displays superior antibacterial efficacy against gram-positive S. aureus, gram-negative E. coli, and P. vulgaris bacteria in comparison to CeO2 and Mo-doped CeO2. This may be attributed to the combined effects of the generation of reactive oxygen species (R.O.S.) and the intrinsic characteristics of the dopant and carbon matrix. The results of our research emphasize the potential of carbon-based nanoparticles as versatile agents in the realms of environmental rehabilitation and biomedical research. These nanoparticles provide a method to achieve more efficient and resilient solutions in these areas.