The present work focused on the synthesis of native silver hydroxyapatite (AgHAP) nanoparticles and their reinforcement into the host matrix of binary polymer blend of polystyrene (PS) and poly (methyl methacrylate) (PMMA). The structural and morphological studies of prepared nanoparticles and AgHAP reinforced PS‐PMMA nanocomposites were performed by various characterization techniques like Fourier transform infrared (FT‐IR) and Raman spectroscopy, X‐ray diffraction, atomic force microscopy (AFM), and Field emission scanning electron microscopy (FESEM). The particle size analysis and zeta potential measurements were used to confirm nanosize of the AgHAP nanoparticles and their surface charges. The mechanical properties of AgHAP/PS/PMMA nanocomposites, such as microhardness and compressive strength, were also determined. The blood compatibility tests were performed to investigate biocompatible nature of the nanocomposites. The antibacterial property of the nanocomposites was also studied against S. aureus and E. coli species and the cytotoxic nature of the nanocomposites was conducted following 3‐(4,5‐Dimethylthiazol‐2‐Yl)‐2,5‐Diphenyltetrazolium Bromide (MTT) assay test.