In this research, we investigated the potential of a leaf extract from the Punica Granatum peel as a reducing and capping agent in the manufacture of a nanocomposite consisting of Ag-doped Sm2O3 nanoparticles encased in reduced graphene oxide (rGO). XRD, SEM, TEM, FTIR, XPS, PL, and DRS were all used to confirm the performance and characterisation of nanocomposite materials. Photocatalytic degradation studies of 4-nitrophenol (4-NP) and methylene blue (MB) provided interesting insights into the photocatalytic activity of Ag@Sm2O3/rGO. The results show that Ag@Sm2O3 particles between 10 nm and 20 nm in size are uniformly distributed across the RGO surface. Maximum photodegradation efficiency towards MB (96.7 %), high apparent constant (0.8716 min−1), and long-term stability under UV light exposure are all achieved when rGO is combined with Ag@Sm2O3 as the photocatalyst. It was confirmed that certain types of bacteria and fungi responded differently to the antibacterial properties of doped and undoped nanoparticles. The surface surface plasmon resonance (SPR) of Ag NPs had a role in the relationship between Sm2O3 nanoparticles and rGO sheets, which led to this finding. A novel Sm2O3-based photocatalyst with high solar absorption and higher catalytic activity is proposed, and a viable mechanism for developing such a material is shown in this study.