An environmentally sustainable, versatile, and cost-effective approach for C-Se and C-X (X = I, Br, and Cl) bond formation through C-H functionalization assisted by micellar catalysis in water is developed. The reaction utilizes a minimum amount of diorganyl diselenides and potassium halides for the respective functionalizations. The present protocol was suitable for scale-up synthesis, which directly provided the desired selenylated products without the need for chromatographic purification, in sufficient purity. The aqueous micellar catalysis system was reusable for up to 5 reaction cycles without compromising the reaction yield.