Biologically synthesized nanoparticles have been widely using in the field of medicine. Research in nanotechnology highlights the possibility of green chemistry pathways to produce technologically important nanomaterials. The synthesis, characterization and application of biologically synthesized nanomaterials have become an important branch of nanotechnology. Fresh leaves of Cassia italica was used for the synthesis of silver (Ag) nanoparticles. The present study revealed that the phytosynthesis of silver nanoparticles from 1mM AgNO3 solution through the leaf extract of C. italica as reducing agent as well as capping agent. Characterization of newly synthesized silver nanoparticles was observed using UV-vis spectroscopy, Fourier Transform Infrared (FTIR) spectroscopy, X-ray diffraction (XRD) and High Resolution Transmission, Electron Microscope (TEM) studies. TEM image divulges that silver nanoparticles are quite poly-dispersed. The extra-cellular synthesis of Ag nanoparticles moves towards extracellular level. The above silver nanoparticles were found to be effective against E. coli and C. albicans. The effect of silver nanoparticles on the growth of bacteria and fungus varied. The important outcome of this study would help to formulate value added products in biomedical and nanotechnology based industries, when commonly available plants are properly screened medicinal plants.