A novel approach for synthesizing Titanium Oxide nanoparticles (NPs) using the rotating electrode in arc discharge method was developed by focusing on enhanced photocatalytic activity. Utilizing a rotating electrode as a third electrode in the arc discharge process enables us to synthesize defective titanium oxide, which facilitates the effective decoration with Ag NPs. Silver-decorated Titanium Oxide (Ag/Titanium Oxide) NPs were synthesized via a photoreduction process, improving visible light response through surface plasmon resonance which introduces new energy levels near the conduction band. The Ag/Titanium Oxide NPs exhibited high degradation of Rhodamine B dye, achieving 98% removal under visible light, attributed to the efficient charge separation. Scanning electron microscopy (SEM) revealed uniform morphology and size distribution and X-ray diffraction (XRD) also identified the crystalline phases (anatase and rutile). X-ray photoelectron spectroscopy (XPS) confirmed the chemical states and successful silver deposition. UV-visible spectroscopy along with photoluminescence (PL) analysis determined the optical properties. BET surface area measurements indicated enhanced surface area, supporting improved photocatalytic efficiency. These results highlight the potential of Ag/Titanium Oxide composite in designing advanced photocatalysts for environmental applications.