The present study is designed to analyse the antibacterial and anticancer effects of silver nanoparticles (AgNPs) synthesised from the Cymbopogon citratus, (lemongrass) (LG-AgNPs), which is widely used in ayurvedic drugs for treating various diseases. The LG-AgNPs were synthesised and characterised using ultraviolet (UV) spectroscopy, Fourier transform infrared spectroscopy (FTIR), X-ray diffraction (XRD) and transmission electron microscopy (TEM) analysis. The characterised LG-AgNPs was subjected to antimicrobial analysis by disc diffusion method against pathogenic bacteria and fungi. Furthermore, the cytotoxicity and anticancer activity of the LG-AgNPs were assessed with lung alveolar carcinoma cell line A549. Results depict that UV-visible spectra of LG-AgNPs showed strong absorption peak at 435 nm. The XRD study exposed LG-AgNPs crystals, which confirmed with TEM analysis exhibiting particle size ranging between 17 and 25.8 nm. The FTIR spectra recorded peaks at 3347, 2126, 1639, 659, 598 and 553 cm-1. The zone of inhibition study proves the LG-AgNPs possessed both antibacterial and antifungal activities. 3-(4, 5-dimethyl thiazoyl-2-yl)-(2,5-diphenyltetrazolium bromide) results show the cytotoxicity effect of LG-AgNPs in lung cancer cells. It also inhibited the cell migration and invasion at the dose of 25 µg ml-1 by increasing the apoptotic gene expression. The results reveal LG-AgNPs possess anticancer activities, proposing that it may be an alternative drug for allopathic drugs with lots of side effects used in lung cancer treatment.