A simple one-step approach for the preparation of Ag–Fe-decorated single-walled carbon nanotubes (Ag–Fe/SWCNTs) by DC hydrogen arc discharge is presented in this article. The growth of SWCNTs and the attachment of Ag and Fe nanoparticles to the SWCNTs occur simultaneously during the arc discharge evaporation process. It has been confirmed that the Ag and Fe nanoparticles in the diameter range of 1–10 nm are well dispersed and tightly attached to the outer surfaces of SWCNTs. The as-grown Ag–Fe/SWCNTs have been purified by high-temperature hydrogen treatment to remove amorphous carbon and carbon shells. Antibacterial tests show that the antibacterial activity of the purified Ag–Fe/SWCNT hybrid nanoparticles is excellent against Escherichia coli. The percentage of the E. coli killed by 100 μg/ml Ag–Fe/SWCNTs can reach up to 85.1 % at a short residence time of 2 h, suggesting that the purified Ag–Fe/SWCNTs may have potential antibacterial applications.