Germination is a simple and cost-effective technology that enhances the technological, sensory, and nutritional potential of grains, making them more attractive for use in the food industry. Germinating indigenous seeds is an alternative to increase noticeability and add value to these grains, which hold social and economic significance in the regions where they are cultivated, such as creole purple pericarp corn (PPCC) from the Couto Magalhães de Minas region in Brazil. This study aimed to optimize the germination parameters of time (24–96 h) and temperature (18–32 °C) for PPCC to produce water-soluble extracts and bread. Endogenous enzymes resulting from the germination process significantly enhanced (p < 0.10) the technological (total reducing sugars, total soluble solids, and soluble proteins) and biological properties (γ-aminobutyric acid, total soluble phenolic compounds, and antioxidant capacity) of the water-soluble extracts. The optimum point for obtaining the extracts was found to be at 85.3 h at 30.46 °C (with desirability of 90.42%), and this was statistically validated. The incorporation of germinated PPCC flours into bread was also promising (p < 0.10) and had a positive impact on the dough property (dough volume increase) and the final product, especially in terms of instrumental texture (springiness, cohesiveness, gumminess, chewiness, and resilience), resulting in a softer texture (lower firmness and hardness). The addition of PPCC flours did not alter instrumental color parameters, which may lead to greater consumer acceptance due to imperceptible differences in color to untrained individuals, with the optimized point at 96 h at 29.34 °C, with a desirability of 92.60%. Therefore, germinated PPCC shows promise for use as a base for obtaining water-soluble extracts and in bread as a replacement for commercial flour improvers, while also adding value to a raw material that is part of the local culture and agrobiodiversity.