This paper reports a simple, biogenic and green approach to obtain narrow band gap and visible light-active TiO2 nanoparticles. Commercial white TiO2 (w-TiO2) was treated in the cathode chamber of a Microbial Fuel Cell (MFC), which produced modified light gray TiO2 (g-TiO2) nanoparticles. The DRS, PL, XRD, EPR, HR-TEM, and XPS were performed to understand the band gap decline of g-TiO2. The optical study revealed a significant decrease in the band gap of the g-TiO2 (Eg = 2.80 eV) compared to the w-TiO2 (Eg = 3.10 eV). The XPS revealed variations in the surface states, composition, Ti4+ to Ti3+ ratio, and oxygen vacancies in the g-TiO2. The Ti3+ and oxygen vacancy-induced enhanced visible light photocatalytic activity of g-TiO2 was confirmed by degrading different model dyes. The enhanced photoelectrochemical response under visible light irradiation further supported the improved performance of the g-TiO2 owing to a decrease in the electron transfer resistance and an increase in charge transfer rate. During the TiO2 treatment process, electricity generation in MFC was also observed, which was ~0.3979 V corresponding to a power density of 70.39 mW/m2. This study confirms narrow band gap TiO2 can be easily obtained and used effectively as photocatalysts and photoelectrode material.