Doping transition metal ions into cerium oxide (CeO2) results in interesting modifications to the material, including an increase in surface area, a high isoelectric point, biocompatibility, greater ionic conductivity, and catalytic activity. Herein, various concentrations (1–5%, 10% and 20%) of nickel (Ni) doped CeO2 nanoparticle have been made by a facile chemical process. Using a variety of cutting-edge analytical techniques, the structural, optical, and photocatalytic properties of undoped and varied concentrations (1–5%, 10%, and 20%) of Ni doped CeO2 nanoparticles have been investigated. Pure cubic fluorite structure with average crystallite sizes in the region of 12–15 nm was determined by X-ray diffraction (XRD) investigation. Transmission electron microscopy (TEM), which revealed highly homogeneous hexagonal shape of the particles with average size of 15 nm, was also used to determine microstructural information. According to the optical absorption, the band gaps of Ni doped and undoped CeO2 nanoparticles were found to be 2.96 eV and 1.95 eV, respectively. When exposed to sunlight, the narrow band gap Ni doped CeO2 nanoparticles worked as an active visible light catalyst to remove the dyes Rose Bengal (RB) and Direct Yellow (DY). The best photodegradation efficiencies for RB and DY dyes were found about 93% and 97%, respectively, using the 5% Ni-doped CeO2 catalyst. The apparent rate constant values of 0.039 for RB and 0.040 min−1 were attained for DY. As well, the treated, untreated dye solution and control solutions were utilized to assess the toxicity of commercially accessible Vigna Radiata seeds. In this study exhibits percentages of length and germination increased by 30–35% when compared to dye pollutant solution. The Ni doped CeO2 can provide a substantial alternative for current industrial waste management because of its quick photocatalytic activity and remarkable seed germination results.