Reaction of a new phosphorus ylide (p-tolyl)3P=CHC(O)C6H4(m-OCH3) (Y) with mercury(II) halides in equimolar ratios using methanol as solvent yielded binuclear complexes of the type [Y.HgX2]2 (X = Cl, Br, I). The ylide reacts with Hg(NO3)2.H2O and Cd(NO3)2.4H2O in the same solvent with equimolar ratios to give polynuclear complexes [M(Y)(NO3)(μ-NO3)]n (M = Hg, Cd) and with AgNO3 and AgOTf in 1:2 molar ratio to give mononuclear complexes [AgY2]Z [Z = NO3 or OTf]. A theoretical study of structure and bonding in [Y.HgX2]2 (X = Cl, Br, I) at the BP86/def2-SVP level of theory is reported and the synthesised compounds were screened for their antibacterial activity against six Gram negative and Gram positive bacteria