The synthesis of bimetallic nanoparticles using eco-friendly and sustainable methods has garnered significant attention in recent years due to their potential in diverse catalytic and biomedical applications. This study reports, for the first time, the green synthesis of Ag/CuO bimetallic nanoparticles using Artemisia pallens extract as a biogenic reducing and stabilizing agent, and demonstrates their superior catalytic performance in an eco-friendly Petasis reaction. The synthesized nanoparticles were characterized using various techniques, including XRD, SEM, EDX, and FTIR. The XRD analysis confirmed the crystalline Ag/CuO phases with peaks at 38.1° and 44.3° with an average size of 14.51 nm ± 1.00 nm, while SEM showed have flower-like morphology, EDX confirmed Ag, Mg, Si, Ca, C, O, and Cu presence, and FTIR indicated successful capping by Artemisia pallens phytochemicals. The Ag/CuO nanoparticles exhibited high catalytic efficiency under mild aqueous hydrotropic conditions, as reflected by excellent Reaction Mass Efficiency (RME) values (up to 79%) and notably low Process Mass Intensity (PMI) values (as Low as 14 g/g), clearly outperforming traditional methods that use organic solvents and mineral acids. The Turnover Number (TON) and Turnover Frequency (TOF) further emphasize their effectiveness and reusability for green organic synthesis. Additionally, the antibacterial activity of Ag/CuO nanoparticles was evaluated against Staphylococcus aureus, Bacillus subtilis, Escherichia coli, and Pseudomonas aeruginosa using the agar disk diffusion method. The nanoparticles showed significant inhibition zones ranging from 14 to 20 mm, indicating strong antibacterial efficacy. Furthermore, molecular docking studies of indoline-derived arylglycine derivatives revealed strong binding interactions with the 5GS4 target protein, with Molecule 4f showing the highest affinity (MolDock Score: -114.278, Rerank Score: 90.5965), comparable to the standard drug spironolactone. This work highlights a sustainable approach for synthesizing functional bimetallic nanoparticles with dual applications in green catalysis and antimicrobial activity, contributing to advancements in environmentally friendly nanotechnology and synthetic methodologies.