Owing to the benign nature, plant extracts mediated green synthesis of metal nanoparticles NPs is rapidly expanding. In this study, we demonstrated the successful green synthesis of silver nanoparticles AgNPs by utilizing natural sunlight and redox protein complex composed of ferredoxinndashNADPreductase FNR and ferredoxin FD. The capping and stabilization of the AgNPs by the redox protein was confirmed by Fourier transform infrared spectroscopy. Light and redox protein is the prerequisite factor for the formation of AgNPs. The obtained result shows that the photo generated free radicals by the redox protein is responsible for the reduction of Agto Ag0. Transmission electron microscopy revealed the formation of spherical AgNPs with size ranging from 10 to 15nm. As-prepared AgNPs exhibit excellent catalytic activity toward the degradation of hazardous organic dyes, such as methylene blue, methyl orange and methyl red. These bio-inspired AgNPs is highly sensitive and selective in sensing hazardous mercury ions in the water at micromolar concentration. In addition, FNR/FD extract stabilized AgNPs showed good antimicrobial activity against gram positive and gram negative bacteria.