The Phytochemical composition and bioactivity of an ethanolic extract of Parmelia perlata were analyzed in this study using established procedures. The extract revealed a rich array of phytochemicals, showcasing its diverse composition, and notably exhibited strong antioxidant activity according to the 1, 1-diphenyl-2- picrylhydrazyl (DPPH) test. Furthermore, the research explored the extract’s potential in preventing Bovine Serum Albumin (BSA) denaturation, comparing it with the well-known medication Diclofenac. The concentration-dependent inhibition of BSA denaturation by P. perlata ethanolic extract was comparable to the effects observed with diclofenac on BSA. The ethanolic extract demonstrated concentration-dependent antibacterial activity against gram-negative and gram-positive bacterial isolates. While gentamicin served as a positive control with larger zones of inhibition, P. perlata extract displayed significant antibacterial efficacy against all six tested organisms. Moreover, in vitro testing against human ovarian (PA-1) cell lines demonstrated the extract’s anticancer potential. A concentration-dependent reduction in cell viability, culminating in the lowest percentage at 1000 µg/ml, was observed. The IC50 value of 31.2 µg/mL showed that the P. perlata extract strongly inhibited the PA-1 cell line. This was confirmed by the observed changes in the cellular morphology when exposed to higher concentrations of the extract. Further, the ethanolic extract of P. perlata was subjected to various concentrations to evaluate its embryotoxicity on zebrafish embryos. The concentration of extract was determined to have a safety limit of less than 50 µg/L. In summary, P. perlata ethanolic extract has emerged as a promising natural resource, exhibiting a spectrum of bioactivities, including potent antioxidant, anti-inflammatory, antibacterial, anticancer properties, and embryonic toxicology study. These findings suggest that its potential utility in pharmaceutical applications is warranted, and further exploration and development are being suggested.