Using extracts from plants and seaweed to make metal nanoparticles is an interesting topic that has some advantages over more traditional physicochemical methods. Recent developments in nanoscience and nanobiotechnology have made it possible for these breakthroughs. Nevertheless, the production of nanoparticles via the use of aquatic plants and the applications of these particles are not very well recognized. This article described an ecologically friendly method of producing AgNPs by employing the aquatic plant Hygrophila corymbosa as the starting material. The examination of the zeta potential at −31.4 mV reveals that the AgNPs that were synthesized were stable for an extended period of time. The pictures produced by the HR-TEM indicated the presence of polydispersed, spherical-shaped nanoparticles with a size of less than 20 nm and distinct lattice fringes. The unmixed state of the AgNPs is represented by the peak in the EDX spectroscopy that was found at roughly 3 keV. XRD studies revealed that the AgNPs were found to be fcc in nature with miller indices of (111), (200), (220), and (311), and the average particle size was found to be 43 nm. The compounds having functional groups secondary amine, alkane, primary amide, and aldehyde in the plants in charge of the reduction of AgNO3 into AgNPs were listed using FT-IR analysis. Gram-positive bacteria B. subtilis, S. aureus, S. mutans, E. faecalis, andL. salivarius, and gram-negative bacteria P. mirabilis, P. vulgaris, K. pneumoniae, P. aeruginosa, andE. coli, as well as the fungal strains Candida albicans, Aspergillus flavus, and Aspergillus niger, were used to test the anti-microbial activity of the AgNPs produced. The outcome demonstrates the potential anti-microbial activity of the produced AgNPs. The anti-diabetic effect of the produced AgNPs was determined using alpha-amylase inhibition test, and they possess excellent efficacy (IC50 value of 47.72) compared with the standard used. These findings demonstrated that AgNPs synthesized using aquatic plants are highly stable and have a higher potential for biological activities.