Discovering novel natural resources for the biological synthesis of metal nanoparticles is one of the two key challenges facing by the field of nanoparticle synthesis. The second challenge is a lack of information on the chemical components needed for the biological synthesis and the chemical mechanism involved in the metal nanoparticles synthesis. In the current study, microwave-assisted silver nanoparticle (AgNP) synthesis employing the defensive gland extract of Mupli beetle,Luprops tristisFabricius (Order: Coleoptera; Family: Tenebrionidae), addresses these two challenges. This study was conducted without killing the experimental insect. Earlier studies in our laboratory showed the presence of the phenolic compounds, 2,3-dimethyl-1,4-benzoquinone, 1,3-dihydroxy-2-methylbenzene, and 2,5-dimethylhydroquinone in the defensive gland extract ofL. tristis. The results of the current study show that the phenolic compounds in the defensive gland extract of the beetle has the ability to reduce silver ions into AgNPs and also acts as a good capping and stabilizing agent. A possible mechanism for the reduction of silver nitrate (AgNO3) into AgNPs is suggested. The synthesized AgNPs were characterized by Ultraviolet–Visible (UV–Vis) spectroscopy, Fourier-transform infrared spectroscopy (FTIR), scanning electron microscopy energy-dispersive X-ray (SEM–EDX) analysis and high-resolution transmission electron microscopic (HR-TEM) techniques. The stability of biologically synthesized nanoparticles was studied by zeta potential analysis. The TEM analysis confirmed that AgNPs are well dispersed and almost round shaped. The average size of nanoparticle ranges from 10 to 20 nm. EDX analysis showed that silver is the prominent metal present in the nanomaterial solution. The AgNPs synthesized have antibacterial property against bothStaphylococcus aureusandEscherichia coli. Radical scavenging (DPPH) assay was used to determine the antioxidant activity of the AgNPs. AgNPs exhibited anticancer activity in a cytotoxicity experiment against Dalton’s lymphoma ascites (DLA) cell line.