Titanium alloys have advanced mechanical properties jointly with high biocompatibility that make them eminently suitable for biomedical applications such as dental and orthopedic implants. Improvement in their osseointegration with human bone can be achieved by the development of hydroxyapatite (HAp) on a Ti alloy surface using different methods of deposition. However, plasma electrolytic oxidation (PEO) treatment has been found to be one of the most promising techniques, due to the formation of high bonding between the bone and the Ti surface. Along with this high bonding, an antibacterial ability of the surface to prevent bacterial infection is also essential. Silver, which is a widely applicable antibacterial agent, was used in this work. First, a titanium oxide coating containing calcium and phosphorus and Ag nanoparticles was formed by PEO treatment. Then, Ti alloy was subjected to hydrothermal treatment to ensure a crystalline formation of HAp. Morphology and phase composition investigations detected the presence of HAp crystals in the coating along with antibacterial agents of silver nanoparticles. The biocompatibility and bioactivity of the created coating were examined by contact angle (CS) measurement and electrochemical impedance spectroscopy (EIS). It was shown that the coating was extensively grown after exposure of the alloy to simulated body fluid (SBF) solution for 7 days with no effect on the Ag nanoparticles. An antibacterial test using Staphylococcus aureus and Escherichia coli revealed that the coating containing Ag nanoparticles has more significant antibacterial effectiveness compared to a coating that does not contain silver.