Multifunctional nanocomposites have been developed containing polymer chitosan, nano silver-doped ceria, and copper nanoparticles. Cu−CeO 2 catalysts have been widely used as active catalysts whereas doping of Ag to CeO 2 is known to enhance the oxygen storage capacity of CeO 2 . Various characterization tools such as powder X-ray diffraction, Fourier transform infrared spectroscopy, thermogravimetric analysis, field emission scanning electron microscopy, energy dispersive X-ray elemental mapping, and high resolution transmission electron microscopy, have been used for the nanocomposite characterization. The surface area was determined by using the Brunauer−Emmett−Teller method. Optical properties have been studied by UV-vis diffuse reflectance spectroscopy and photoluminescence spectroscopy. The average nanocomposite particle size was found to be 4 nm. The synergistic effects of metal−support interfaces, along with charge transfer between metal oxide and metal, have the capacity to result in noteworthy catalytic properties. The nanocomposite was used as a catalyst for the synthesis of the 4-arylidene-isoxazolidinones and amidoalkyl naphthols, which are the moieties used in the various useful molecules. Its antibacterial activity for Gram-positive and Gram-negative bacteria was evaluated as well. A density functional theory study performed supported the experimental findings.