Green synthesis of nanoparticles using seaweeds are fascinating high research attention nowadays and also gaining center of attention in biomedical applications. In this work, we have synthesized biocompatible and functionalized silver nanoparticles using an aqueous extract of seaweed Enteromorpha compressa as a reducing as well as stabilizing agent and their efficient antimicrobial and anticancer activity are reported here. The UV-vis spectra of AgNPs showed the characteristics SPR absorption band at 421 nm. The chemical interaction and crystalline nature of the AgNPs were evaluated by FT-IR and XRD studies. The XRD result of AgNPs shows typical Ag reflection peaks at 38.1°, 44.2°, 64.4° and 77.1° corresponding to (111), (200), (220) and (311) Bragg's planes. The surface morphology and composition of the samples were observed by HRTEM, EDS and SAED pattern analyses. Spherical shaped Ag nano structures were observed in the size ranges between 4 and 24 nm with clear lattice fringes in the HRTEM image. This report reveals that seaweed mediated synthesis of AgNPs and sustained delivery of Ag ions to the bacterial and fungal surface have been reducing their growth rate which was evaluated by well diffusion assay. The synthesized AgNPs showed favorable cytotoxicity against Ehlrich Ascites Carcinoma (EAC) cells with IC50 value was recorded at 95.35 μg mL-1. This study showed cost effective silver nanoparticles synthesis with excellent biocompatibility and thus could potentially be utilized in biomedical and pharmaceutical applications.