Greener way of synthesizing nanoparticles has emerged as a substitute method, as it is ecological and cost effectual. Numerous efforts have been completed for green synthesis of silver oxide nanoparticles (AgO NPs) by various plant extracts. Current work disclosed the green combustion synthesis of AgO NPs by using Lippia citriodora plant powder. Furthermore, photocatalytic properties of AgO NPs were studied on acid orange 8(AO8) dye was assessed under UV light irradiation. The catalyst shows good photocatalytic activity (PCA) for the degradation of AO8 dye, NPs synthesized by Lippia citriodora powder shows high percentage of degradation. The AgO NPs act as excellent antibacterial against S. Aureus and antifungal activity against A. Aureus. Further wound healing studies in excision skin wound model in albino wistar rats showed the effective wound healing activity of AgO NPs incorporated hydrogels compared to untreated and plant extract treatments. The majority upshot of this research will be recommended that biologically synthesized AgO from Lippia citriodora plant powder has more valuable against various disease-causing pathogens and hence could be useful for developing wound dressing agents for nursing care.