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The present study utilized Aspergillus spp. for the synthesis of silver nanoparticles (AgNPs); the developed AgNPs were categorized using analytical techniques, that is, ultraviolet-visible (UV-vis) spectrophotometer, Zeta-potential, dynamic light scattering (DLS), and transmission electron microscopy (TEM). A sharp peak of 463 nm highlighted the synthesis of AgNPs; further Zeta-potential of -16 mV indicates stability of synthesized AgNPs. The TEM micrograph showed spherical and hexagonal shapes of synthesized AgNPs of 6-25 nm. The photocatalytic activity of fungal-mediated AgNPs was evaluated for degradation of reactive yellow dye in the concentration range of 20-100 mg L-1 . The results showed efficient degradation of dye using AgNPs in short span of time. For antibacterial activity, synthesized AgNPs, antibiotic, and AgNPs + antibiotic were tested. As per results, the zone of inhibition (ZOI) of AgNPs showed the values of 13 and 10 mm for Escherichia coli and Staphylococcus aureus, respectively. Further, the ZOI of penicillin highlighted the values of 18 and 17 mm for E. coli and S. aureus, respectively. When AgNPs and penicillin were used in combination, a clear synergistic effect was observed; the ZOI showed 0.49- and 0.36-fold increase in area against E. coli and S. aureus, respectively, in comparison with penicillin or AgNPs alone. Further, the leftover biomass (retentate biomass) was used to decolorize the reactive yellow dye at different initial concentration ranging from 20 to 100 mg L-1 . It was observed that 1 g L-1 retentate biomass (BR ) can effectively remove 82%-100% dye at 20 and 100 mg L-1 initial dye concentration. Results also indicated that with increase in initial reactive dye concentration from 20 to 100 mg L-1 , the decolorization capacity of retentate biomass (BR ) (at 0.2 g L-1 ) decreased from 79.2% to 32.3%. However, the use of AgNPs synthesized leftover fungal biomass can be a good option for up taking the additional dyes/contaminants, and also as leftover biomass can be utilized effectively, it can prove to be an excellent approach for environment safety. As the literature studies did not mentioned the further use of retentate biomass, the present study provides an excellent approach for further research on this aspect. PRACTITIONER POINTS: Synthesis of AgNPs from Aspergillus spp. and characterized with the help of a U.V-vis spectrophotometer, a zeta potential, DLS and TEM. The developed AgNPs were used for antibacterial and dye degradation activity. The left over (retentate) fungal biomass was used further for additional dye degradation activity.