In this paper, novel pH-responsive, semi-interpenetrating polymer hydrogels based on tamarind gum-co-poly(acrylamidoglycolic acid) (TMGA) polymers were synthesized using simple free radical polymerization in the presence of bis[2-(methacryloyloxy)ethyl] phosphate as a crosslinker and potassium persulfate as a initiator. In addition, these hydrogels were used as templates for the green synthesis of silver nanoparticles (13.4 ± 3.6 nm in diameter, TMGA-Ag) by using leaf extract of Teminalia bellirica as a reducing agent. Swelling kinetics and the equilibrium swelling behavior of the TMGA hydrogels were investigated in various pH environments, and the maximum % of equilibrium swelling behavior observed was 2882 ± 1.2. The synthesized hydrogels and silver nanocomposites were characterized via UV, FTIR, XRD, SEM and TEM. TMGA and TMGA-Ag hydrogels were investigated to study the characteristics of drug delivery and antimicrobial study. Doxorubicin hydrochloride, a chemotherapeutic agent successfully encapsulated with maximum encapsulation efficiency, i.e., 69.20 ± 1.2, was used in in vitro release studies in pH physiological and gastric environments at 37 °C. The drug release behavior was examined with kinetic models such as zero-order, first-order, Higuchi, Hixson Crowell and Korsmeyer–Peppas. These release data were best fitted with the Korsemeyer–Peppas transport mechanism, with n = 0.91. The effects of treatment on HCT116 human colon cancer cells were assessed via cell viability and cell cycle analysis. The antimicrobial activity of TMGA-Ag hydrogels was studied against Staphylococcus aureus and Klebsiella pneumonia. Finally, the results demonstrate that TMGA and TMGA-Ag are promising candidates for anti-cancer drug delivery and the inactivation of pathogenic bacteria, respectively.