Silver nanoparticles (AgNPs) were synthesized using a sustainable green approach utilizing deodorizer distillates of canola (CODD) and soybean oil (SODD) as both reducing and capping agents. This synthesis approach resulted in the formation of pale-yellow colored CODD-AgNPs and SODD-AgNPs, which was confirmed by distinctive absorption peaks at 420 nm and 408 nm, respectively via Ultraviolet-Visible (UV–Vis) spectroscopy. Fourier Transform Infrared (FTIR) analysis provided insights into the functional group interactions between CODD and SODD with their AgNPs. X-ray diffraction (XRD) confirmed the face-centered cubic lattice structure of both CODD-AgNPs and SODD-AgNPs. Further characterization via Atomic Force Microscopy (AFM), Transmission Electron Microscopy (TEM), and Scanning Electron Microscopy (SEM) revealed the sizes, shapes, and surface morphologies of CODD-AgNPs and SODD-AgNPs. Assessment of antioxidant activity using the 1,1-diphenyl-2-picrylhydrazyl (DPPH) method demonstrated superior radical scavenging efficacy by CODD-AgNPs (IC50 value 1.07±0.04 µg/mL) and SODD-AgNPs (IC50 value 1.14±0.23 µg/mL) compared to CODD and SODD. Evaluation of antibacterial properties against Escherichia coli (E. coli) and Staphylococcus aureus (S. aureus) via disc diffusion method revealed potent antibacterial activities of CODD-AgNPs and SODD-AgNPs at 100 µg/mL concentration, surpassing the antibacterial efficacy of CODD and SODD. Furthermore, CODD-AgNPs and SODD-AgNPs exhibited significant anti-inflammatory potential at 500 µg/mL concentration, with IC50 values of 187.2 ± 1.28 µg/mL and 203.9 ± 2.08 µg/mL, respectively, highlighting their potential therapeutic applications. In conclusion, this study demonstrates the effective utilization of CODD and SODD in synthesizing AgNPs with enhanced biological functionalities, making them promising candidates for various biomedical applications.