Silver nanoparticles (AgNPs) have gained significant attention in various fields attributed to their unique properties (physical, chemical, and biological) and wide range of applications. This work focuses on the green approach of synthesizing AgNPs using Bay Laurel leaf extracts as reducing and capping agents. The synthesis process, characterization techniques, and applications of AgNPs are discussed. The environmentally friendly approach of using plant extracts for AgNPs production offers a sustainable and alternative to traditional methods and opens up new possibilities for innovative applications in catalysis, sensing, antimicrobial activity, and biomedicine. The investigation of the morphology (size and shape) of the green-synthesized AgNPs was performed using UV–Vis, XRD, FESEM-EDX, and TEM. In this manner, the AgNPs used to manufacture the silver ion-selective electrode, are reduced and stabilized via Bay Laurel leaf extract for the potentiometric determination of the silver ions in the industrial waters in the Midland Refineries Company, MRC-Daura Refineries, Iraq. The Ag ion-selective electrode exhibits a linear response to the AgNO3 concentrations (1 × 10–1 to 1 × 10–5 M) with an acceptable Nernstian slope value of (60 ± 0.1 mV/decade) that agrees with the theoretical value of Nernstian slope, which ranges from (54 to 60.1 mV/decade). Additionally, the detection limit of the manufactured electrode is (5.37 × 10–6 M) within a temperature range of 25–30 °C. The electrode works perfectly within the pH range of (4.0 to 9.0) with a fast response time (2–3 s) for all solution concentrations. Also, the method has been validated by measuring the accuracy and precision for three different concentrations (1 × 10–2, 1 × 10–4, and 1 × 10–5 M) of AgNO3 external solutions, then the potential of the electrode is recorded six times for each solution. The results expressed good and acceptable %RE, %RSD, and %RE values.