<p>In the present investigation, we have examined the structural, mechanical, electronic and optical properties of the BaScAgTe₃ material by a first-principles approach based on density functional theory as implemented in WIEN2k. The optimized structure shows that BaScAgTe₃ contains four formula units and belongs to the orthorhombic <i>Pnma</i> space group. The coordination environment consists of ScTe₆-distorted octahedra and AgTe₄ tetrahedra, which constitute the fundamental components of the crystal structure. Electronic properties were evaluated using the GGA–PBE and TB-mBJ functionals using band structure and density of state analysis. We found a direct bandgap at the Γ point with a value of 0.86 eV for TB-mBJ. The mechanical stability of BaScAgTe₃ was assessed using the Born criteria based on the elastic constants <i>C</i>_ij. This study confirms that BaScAgTe₃ is mechanically stable. Poisson’s ratio and Pugh’s ratio calculations indicate that the material is ductile. The thermoelectric properties are evaluated, including Seebeck coefficient (<i>S</i>), electrical conductivity (<i>σ</i>), thermal conductivity (<i>k</i>), figure of merit (ZT), and power factor analysed over a temperature range of 100 to 1100 K under the constant relaxation time approximation of 10⁻¹⁴ s. Furthermore, the frequency response of optical properties was studied, including the real (dispersive) and imaginary (absorptive) parts of the complex dielectric function, the refractive index, and the absorption coefficient. The results indicate that the material exhibits a direct bandgap within a suitable range for photovoltaic applications. Additionally, it has a high dielectric constant, a substantial absorption coefficient (<i>α</i> ≈ 10⁶ cm⁻¹), and a refractive index that suggests the suitability of BaScAgTe₃ as a promising solar cell absorber material.</p>