Two noble metals, such as silver and gold alloy nanoparticles, were successfully synthesized by the microwave assisted method in the presence of the Asparagus racemosus root extract and were used as an antibacterial and immunomodulatory agent. The nanostuctures of the synthesized nanoparticles were confirmed by various spectroscopic and microscopic techniques. The UV-vis spectrum exhibits a distinct absorption peak at 483 nm for the bimetallic alloy nanoparticles. The microscopic analysis revealed the spherical shaped morphology of the biosynthesized nanoparticles with a particle size of 10–50 nm. The antibacterial potential of the green synthesized single metal (AgNPs and AuNPs) and bimetallic alloy nanoparticles was tested against five bacterial strains. The bimetallic alloy nanoparticles displayed the highest zone of inhibition against P. aeurgnosia and S.aureus strains when compared to single metal nanoparticles and plant extract. In addition, the inmmunomodulatory potential of the root extract of A. racemosus, AgNPs, AuNPs, and Ag-Au alloy NPs is achieved by measuring the cytokine levels in macrophages (IL-1β, IL-6, and TNF-α) and NK cells (IFN-γ) of NK92 and THP1 cells using the solid phase sandwich ELISA technique. The results showed that the root extract of A. racemosus, AgNPs, and AuNPs can reduce the pro-inflammatory cytokine levels in the macrophages cells, while Ag-Au alloy NPs can reduce cytokine responses in NK92 cells. Overall, this study shows that the microwave assisted biogenic synthesized bimetallic nanoalloy nanoparticles could be further explored for the development of antibacterial and anti-inflammatory therapies.