Green synthesized nanoparticles (NPs) have emerged as a new and promising alternative to overcome the drug resistance problem. Peculiar nano-specific features of palladium NPs (Pd-NPs) offer invaluable possibilities for clinical treatment. Due to the development of multi-drug resistance (MDR) in pathogenic bacteria and the prevalence of cancers, use of algae-mediated Pd-NPs could be a prospective substitute. Therefore, Pd-NPs were synthesized by a one-step, cost-effective, and environmentally friendly green method using the extract from a brown alga, Padina boryana (PB-extract), and evaluated for their antibacterial, antibiofilm, and anticancer activities. Pd-NPs were physicochemically characterized for size, shape, morphology, surface area, charge, atomic composition, crystal structure, and capping of Pd-NPs by PB-extract biomolecules by various techniques. The data revealed crystalline Pd-NPs with an average diameter of 8.7 nm, crystal size/structure of 11.16 nm/face-centered cubic, lattice d-spacing of 0.226 nm, 28.31% as atomic percentage, surface area of 16.1 m2/g, hydrodynamic size of 48 nm, and zeta-potential of − 28.7 ± 1.6 mV. Fourier-transform infrared spectroscopy (FT-IR) analysis revealed the role of PB-extract in capping of Pd-NPs by various functional groups such as –OH, C=C, C–O, and C–N from phenols, aliphatic hydrocarbons, aromatic rings, and aliphatic amine. Out of 31, 23 compounds were found involved in biosynthesis by Gas chromatography–mass spectrometry (GC–MS) analysis. Isolated strains were identified as MDR Staphylococcus aureus, Escherichia fergusonii, Acinetobacter pittii, Pseudomonas aeruginosa, Aeromonas enteropelogenes, and Proteus mirabilis and Pd-NPs exhibited strong antibacterial/antibiofilm activities against them with minimum inhibitory concentration (MIC) in the range of 62.5–125 μg/mL. Moreover, cell viability assays showed concentration-dependent anti-proliferation of breast cancer MCF-7 cells. Pd-NPs also enhanced mRNA expression of apoptotic marker genes in the order: p53 (5.5-folds) > bax (3.5-folds) > caspase-3 (3-folds) > caspase-9 (2-folds) at 125 μg/mL. This study suggested the possible role of PB-extract capped Pd-NPs for successful clinical management of MDR pathogens and breast cancer cells.