Leucite glass–ceramics are excellent dental restorative materials, but they have relatively poor fracture toughness and high hardness, which leads to lower damage tolerance and counter‐tooth wear, respectively. These materials are also susceptible to bacterial infections and biofilm formations. Here, we report a versatile material leucite–silver‐based glass–ceramic to address the aforementioned shortcomings. Silver was incorporated in leucite (K2O·Al2O3·4SiO2) glass–ceramic to improve the fracture toughness, reduce hardness, and impart antibacterial characteristics. Silver (2, 5, 10, and 15 wt.%) was added into the leucite glass matrix by two approaches, that is, using silver nanoflakes (AgNFs) and using precursor (AgNO3), via thermal decomposition, followed by a sintering process. The incorporation of silver was confirmed by X‐ray diffraction, transmission electron microscopy, and energy‐dispersive spectroscopy. Results showed that the hardness of the leucite‐silver composite material was reduced by 30% and indentation toughness improved by 47% as determined by Vickers indentation. Antibacterial characteristics of the material were investigated against Staphylococcus aureus and Escherichia coli bacteria. Scanning electron microscopy was done to see the morphology of damaged bacteria and colonies. Further, antibacterial activity was quantified using the colony formation unit counting method. All the samples showed antibacterial activity and the sample with the highest silver content, that is, 15 wt.% showed maximum potential to damage the bacteria. Inductively coupled plasma‐atomic emission spectroscopy analysis is done in phosphate buffer saline solution to quantify the amount of silver leached out from the leucite‐silver glass–ceramic samples. It was seen that the cumulative leached‐out silver over 3 days was less than 4 μg/cm2 which is well within the daily tolerance limit (5 μg/kg/day) of silver for the human body. Further, to confirm the cell viability, a cytocompatibility test is performed using L929 fibroblast and AW8507 oral cell lines. Cell viability of more than 80% was achieved, suggesting their suitability for biomedical applications. It is believed that the developed material can be a potential candidate for various applications like dental restorations, implants, and coating material for different substrates (SS 304, SS 316, Ti6Al4V, etc.) to protect them from bacterial infections and biofilm formation, etc.