This study involves environmentally friendly synthesis of copper nanoparticles in aqueous medium without inert gas protection, using ranolazine as a capping material. UV-Visible (UV-Vis) spectrometry showed that ranolazine-derived copper nanoparticles (Rano-Cu NPs) demonstrate a localized surface plasmon resonance (LSPR) band at 573 nm with brick-red color under optimized parameters, including pH, reaction time, and concentrations of copper salt, hydrazine hydrate, and ranolazine. The coating of ranolazine on the surface of Cu NPs was studied via Fourier transform infrared (FTIR) spectroscopy. Scanning electron microscopy (SEM) revealed that Rano-Cu NPs consist of spherical particles. X-ray diffraction (XRD) verified that Rano-Cu NPs are crystalline in nature. Atomic force microscopy (AFM) showed that the average size of Rano-Cu NPs was 40 ± 2 nm in the range of 22–95 nm. Rano-Cu NPs proved to be highly sensitive as a selective colorimetric sensor for As3+ via color change from brick red to dark green, in the linear range of 3.0 × 10−7 to 8.3 × 10−6 M, with an R² value of 0.9979. The developed sensor is simple, cost effective, highly sensitive, and extremely selective for As3+ detection, showing a low detection limit (LDL) of 1.6 × 10−8 M. The developed sensor was effectively tested for detection of As3+ in some water samples.