Although ultrafiltration is a reliable method for separating oily wastewater, the process is limited by problems of low flux and membrane fouling. In this study, for the first time, commercial TiO2/ZrO2 ceramic membranes modified with silver-functionalized copper oxide (Ag-CuO) nanoparticles are reported for the improved separation performance of emulsified oil. Ag-CuO nanoparticles were synthesized via hydrothermal technique and dip-coated onto commercial membranes at varying concentrations (0.1, 0.5, and 1.0 wt.%). The prepared membranes were further examined to understand the improvements in oil-water separation due to Ag-CuO coating. All modified ceramic membranes exhibited higher hydrophilicity and decreased porosity. Additionally, the permeate flux, oil rejection, and antifouling performance of the Ag-CuO-coated membranes were more significantly improved than the pristine commercial membrane. The 0.5 wt.% modified membrane exhibited a 30% higher water flux (303.63 L m−2 h−1) and better oil rejection efficiency (97.8%) for oil/water separation among the modified membranes. After several separation cycles, the 0.5 wt.% Ag-CuO-modified membranes showed a constant permeate flux with an excellent oil rejection of >95% compared with the unmodified membrane. Moreover, the corrosion resistance of the coated membrane against acid, alkali, actual seawater, and oily wastewater was remarkable. Thus, the Ag-CuO-modified ceramic membranes are promising for oil separation applications due to their high flux, enhanced oil rejection, better antifouling characteristics, and good stability.