Cellulose is the natural biopolymer normally used as supporting agent with enhanced applicability and properties. In present study, cellulose isolated from citrus waste is used for silver nanoparticles (Ag-NPs) impregnation by a simple and reproducible method. The Ag-NPs fabricated cellulose (Ag-Cel) was characterised by powder X-rays diffraction, Fortier transform infrared spectroscopy and scanning electron microscopy. The thermal stability was studied by thermo-gravimetric analysis. The antibacterial activity performed by disc diffusion assay reveals good zone of inhibition against Staphylococcus aureus and Escherichia coli by Ag-Cel as compared Ag-NPs. The discs also displayed more than 90% reduction of S. aureus culture in broth within 150 min. The Ag-Cel discs also demonstrated minor 2,2-diphenyl 1-picryl-hydrazyl radical scavenging activity and total reducing power ability while moderate total antioxidant potential was observed. Ag-Cel effectively degrades methylene-blue dye up to 63.16% under sunlight irradiation in limited exposure time of 60 min. The Ag-NPs impregnated cellulose can be effectively used in wound dressing to prevent bacterial attack and scavenger of free radicals at wound site, and also as filters for bioremediation and wastewater purification.