Affordable clay-based ceramic filters with multifunctional properties were prepared using low-cost and active ingredients. The characterization results clearly revealed well crystallinity, structural elucidation, extensive porosity, higher surface area, higher stability, and durability which apparently enhance the treatment efficiency. The filtration rates of ceramic filter were evaluated under gravity and the results obtained were compared with a typical gravity slow sand filter (GSSF). All ceramic filters showed significant filtration rates of about 50–180 m/h, which is comparatively higher than the typical GSSF. Further, purification efficiency of clay-based ceramic filters was evaluated by considering important drinking water parameters and contaminants. A significant removal potential was achieved by the clay-based ceramic filter with 25% and 30% activated carbon along with active agents. Desired drinking water quality parameters were achieved by potential removal of nitrite (98.5%), nitrate (80.5%), total dissolved solids (62%), total hardness (55%), total organic pollutants (89%), and pathogenic microorganisms (100%) using ceramic filters within a short duration. The remarkable purification and disinfection efficiencies were attributed to the extensive porosity (0.202 cm³ g⁻¹), surface area (124.61 m² g⁻¹), stability, and presence of active nanoparticles such as Cu, TiO₂, and Ag within the porous matrix of the ceramic filter.