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In this study, we have synthesized cPC functionalized hybrid Ag nanoparticles (AgcPCNPs) by employing a green chemistry approach. This study also entails an in-depth understanding of different biochemical interaction between synthesized AgcPCNPs with whole blood and hemoglobin (Hbc). The cPC primed on the surface of the AgNPs reduced the hemolysis and lipid oxidation. A variation in the K+ concentrations and were observed. Additionally, molecular docking technique did not indicate significant changes in the protein structures. Finally, the AgcPCNPS enhanced the cellular migration of fibroblast. • Synthesis and characterization of silver core CPC capped nanoparticles. • cPC conjugation reverses blood cell stress phenomenon by AgNPs. • AgcPC nanoparticles enhanced migration of fibroblasts. Green synthesis of metal-encased nutraceutical nano-hybrids has been a target for research over the last few years. In the present investigation, we have reported temperature dependent facile synthesis of silver nanoparticles using FDA approved c phycocyanin (cPC). The cPC conjugated silver nanoparticles (AgcPCNPs) were characterized by TEM, Zeta Potential, UV–vis, XPS, FTIR, and CD Spectroscopy. The temperature optimization studies suggested the synthesis of stable AgcPCNPs at 40 °C while at higher temperature system shows aggregated appearance. Molecular docking studies predicted the exclusive interaction of C, D, I, and J chains of cPC with the surface of AgNPs. Moreover, AgcPCNPs significantly (p < 0.1 %) counteract the toxic nature of AgNPs on red blood cell by measuring parameters like total RBC count, % hemolysis, % hematocrit, coagulation time, pH, electrolyte concentrations and degree of blood cell lipid peroxidation by the anti-oxidation mechanism. Skin fibroblast in vitro cell migration result suggeststhat AgcPCNPs enhanced the degree of cell movement towards the wound area. Data obtained collectively demonstrate that AgcPCNPs can be a better agent in the dermal wound healing with reduced toxicity with the bi-phasic advantage of cPC as a wound healer and Ag nano-metal as an anti-bacterial agent. [ABSTRACT FROM AUTHOR]