In this study, we report the antibacterial mechanisms of action of uniform silver nanoparticles (AgNPs) and decorated activated carbon nanocomposite (CAC-AgNPs) obtained using a green synthesis approach. The nanomaterials were characterized by ultraviolet-visible (UV-vis) absorption spectra and Fourier transform infrared (FTIR) spectra. The antibacterial activity of the as-prepared nanomaterials was evaluated against an array of bacterial strains by microdilution method, whereas their cytotoxicity profile was evaluated on Vero cells (human mammalian cells). The antibacterial mechanistic studies of active nanomaterials were carried out through bacterial growth kinetics, nucleic acid leakage test, and catalase inhibition assay. A silver nanocomposite was successfully fabricated from Croton macrostachyus-based activated carbon. The as-prepared nanomaterials exhibited antibacterial activity against an array of bacterial strains (minimum inhibitory concentration (MIC) range: 62.5 to 500 µg/mL), the most susceptible being Escherichia coli and Staphylococcus aureus. Cytotoxicity studies of the nanomaterials on Vero cells revealed that the nanocomposite (median cytotoxic concentration (CC50): 213.6 µg/mL) was less toxic than the nanoparticles (CC50 value: 164.75 µg/mL) counterpart. Antibacterial mechanistic studies unveiled that the nanomaterials induced (i) bacteriostatic activity vis-à-vis E. coli and S. aureus and (ii) inhibition of catalase in these bacteria. This novel contribution on the antibacterial mechanisms of action of silver nanocomposite from C. macrostachyus-based activated carbon might contribute to the understanding of antibacterial action of these biomaterials. Nevertheless, more chemistry and in vivo experiments, as well as in depth antibacterial mechanistic studies are warranted for the successful utilization of these antibacterial biomaterials.