In this study, multifunctional lithium-doped bismuth ferrite [BiFe
1−xLi
xO
3]-graphene nanocomposites (x = 0.00, 0.02, 0.04, 0.06) were synthesized by a sol-gel and ultrasonication assisted chemical reduction method. X-ray diffraction and FESEM electron microscopy techniques disclosed the nanocomposite phase and nanocrystalline nature of [BiFe
1−xLi
xO
3]-graphene nanocomposites. The FESEM images and the EDX elemental mapping revealed the characteristic integration of BiFe
1−xLi
xO
3 nanoparticles (with an average size of 95 nm) onto the 2D graphene layers. The Raman spectra of the [BiFe
1−xLi
xO
3]-graphene nanocomposites evidenced the BiFe
1−xLi
xO
3 and graphene nanostructures in the synthesized nanocomposites. The photocatalytic performances of the synthesized nanocomposites were assessed for ciprofloxacin (CIP) photooxidation under UV-visible light illumination. The photocatalytic efficiencies of [BiFe
1−xLi
xO
3]-graphene nanocomposites were measured to be 42%, 47%, 43%, and 10%, for x = 0.00, 0.02, 0.04, 0.06, respectively, within 120 min illumination, whereas the pure BiFeO
3 nanoparticles were 21.0%. BiFe
1−xLi
xO
3 nanoparticles blended with graphene were explored as cathode material and tested in a microbial fuel cell (MFC). The linear sweep voltammetry (LSV) analysis showed that the high surface area of BiFeO
3 was attributed to efficient oxygen reduction reaction (ORR) activity. The increasing loading rates of (0.5–2.5 mg/cm
2) [BiFe
1−xLi
xO
3]-graphene composite on the cathode surface showed increasing power output, with 2.5 and 2 mg/cm
2 achieving the maximum volumetric power density of 8.2 W/m
3 and 8.1 W/m
3, respectively. The electrochemical impedance spectroscopy (EIS) analysis showed that among the different loading rates used in this study, BiFeO
3, with a loading rate of 2.5 mg/cm
2, showed the lowest charge transfer resistance (R
ct). The study results showed the potential of [BiFe
1−xLi
xO
3]-graphene composite as a cost-effective alternative for field-scale MFC applications.
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