Green synthesis of metallic nanoparticles by means of renewable bioresources has emerged as a new trend in current nanotechnology research with improved environmental safety. In the current study, monodispersed gold nanoparticles (AuNPs) with excellent stability were prepared in a completely green and cost effective manner using aqueous extract of marine macroalgae-Padina tetrastromatica. The influence of reaction conditions such as the quantity of seaweed extract, temperature, precursor metal ion concentration, reaction time and pH on the biosynthesis of nanoparticle was evaluated spectroscopically and also with the help of high resolution transmission electron microscopy (HR-TEM). These physicochemical parameters not only affected the rate of formation but also the size and morphology of resultant nanoparticles. Optimum conditions resulted in the generation of nearly spherical AuNPs having an average particle size of 11.4 nm. The high crystallinity of the biogenic AuNPs was confirmed from characteristic diffraction peaks in XRD profile, clear lattice fringes in the HR-TEM image and bright circular spots in the SAED pattern. The presence of metallic gold was evidenced from EDAX profile. FTIR study revealed the role of secondary metabolites in the bioreduction as well as stabilization of AuNPs. The study also highlights the spectroscopic investigation on the catalytic efficacy of the biosynthesized AuNPs in the reduction reactions of hazardous organic dyes, eosin yellow and Congo red using sodium borohydride, which have a pseudo-first order kinetics. Thus, the biosynthesized metal nanoparticles using renewable marine resources like seaweeds act as promising materials for the application in environmental protection.