The present work deals with the preparation and characterization of lignin based macromolecular polymeric composites and applications thereof. Here lignin is complexed with pectin and/ or gellan gum, to form two different macromolecular green composites LP and LPG. The best ratios screened out through evaluation of nanoparticle characterization and rheology, then confirmed by surface morphology. The superior thermal stability is proved by DSC analysis. The reaction groups involving in complexation are confirmed by FT‐IR spectroscopic evaluation where the methoxy or methyl group of lignin interacts with the hydroxyl group of pectin and gellan gum to form nanocomposites. The reduced particle size and surface charge confirm the complexation due to interaction between ionizable functional groups. The applications of these composites are validated by their dye adsorption capacity and anti‐microbial properties (after loading of green silver nanoparticles) which proves the multifunctional properties of novel composites. The maximum dye removal efficiency of both composites is independent of initial dye concentration. Dye adsorption capacity is best fitted by Freundlich adsorption isotherms that follow pseudo‐second‐order adsorption kinetics. The antibacterial study of developed silver nanoparticle loaded and unloaded composites shows wide spectrum activity against E. coli and S. aureus, with higher inhibition efficiency against gram‐negative organism.