Our study focused on the optical behavior, methylene blue (MB) dye degradation potential, antibacterial performance, and silver and trioxide mineral interaction with different bacterial species. We found that the addition of silver nanoparticles (Ag NPs) to neodymium oxide (Nd2O3) resulted in a significant response, with an enlargement of the inhibition zone for bacterial species such as Staphylococcus aureus and Escherichia coli. Specifically, the inhibition zone for S. aureus increased from 9.3 ± 0.5 mm for pure Nd2O3 to 16.7 ± 0.4 mm for the Ag/Nd2O3 nano-composite, while for E. coli, it increased from 8.8 ± 0.4 mm for Nd2O3 to 15.9 ± 0.3 mm for Ag/Nd2O3. Furthermore, the optical behavior of the composites showed a clear band-gap narrowing with the addition of Ag NPs, resulting in enhanced electronic localization. The direct and indirect transitions reduced from 6.7 to 6.1 eV and from 5.2 to 2.9 eV, respectively. Overall, these results suggest that the Ag/Nd2O3 nano-composite has potential applications in sensor industries and water treatment, thanks to its enhanced optical behavior, antibacterial performance, and efficient MB degradation capabilities. In terms of MB degradation, the Ag/Nd2O3 mixed system exhibited more efficient degradation compared to pure Nd2O3. After 150 min, the MB concentration in the mixed system decreased to almost half of its starting point, while pure Nd2O3 only reached 33%. [ABSTRACT FROM AUTHOR]