Background: Falconeria insignis Royle, a medicinal plant of the Euphorbiaceae family, has been extensively used in Nepal for bacteria-infected wounds, despite the lack of empirical evidence supporting its efficacy. Objectives: This study aims to evaluate the phytopharmaceutical potential of F. insignis leaves and stems in combating oxidative stress and bacterial infections. Methods: Phytoconstituents were characterized using the LC-MS technique. The antioxidant activity was evaluated through DPPH, nitric oxide, hydroxyl radical, and FRAP assays. Furthermore, antibacterial activity was assessed via in vitro disc diffusion and broth dilution assays, along with in silico molecular docking and ADME-toxicity studies. Results: The phenolic compounds identified include gallic acid, chlorogenic acid, and quercetin. Methanolic leaf extract exhibited significant DPPH radical scavenging activity, with an IC 50 of 5.272 ± 0.5 µg/ml, comparable to that of standard ascorbic acid (IC 50 of 4.05 ± 0.3 µg/ml). Additionally, it also demonstrated a pronounced dose-dependent capacity to scavenge nitric oxide, hydroxyl radicals, and reduce ferric ions. Methanolic leaf and ethyl acetate stem extracts showed promising antibacterial activity against Staphylococcus aureus, with a zone of inhibition (ZOI) ranging from 17 to 24 mm and a minimum inhibitory concentration (MIC) of 15.625 µg/ml. In contrast, standard antibiotic meropenem exhibited a ZOI of 24 ± 1.6 mm and MIC of 1.5625 µg/ml. All identified phytoconstituents displayed strong interactions with the catalytic residues SER 403, LYS 406, SER 462, ASN 464, and THR 600 of the penicillin-binding protein, with binding energies of −6.1 to −7.1 kcal/mol, rivaling meropenem (−7.4 kcal/mol). Furthermore, these compounds were forecasted to be safe in terms of hepatotoxicity, with minimal risks of nephrotoxicity. Conclusion: Our findings establish F. insignis as a promising antioxidant and antibacterial crude drug and recommend further cell line and in vivo validations, along with isolation of antibacterial lead compounds.