Silver (Ag)- Poly ethylene glycol-4000(PEG), Silver-PEG nanocomposite materials were synthesized by a microwave assisted method. The synthesized Silver-PEG nanocomposite contains weight percentage 50 (50 wt%) silver. The Silver-poly ethylene glycol nanocomposite was characterized using Transmission electronic microscope (TEM), UV– visible and Fourier transform infrared spectroscopy (FTIR). The UV absorption pattern indicated the presence of silver in the nanocomposite. The spherical morphology of silver nanoparticles was confirmed from the TEM image. FTIR spectroscopy was used for the structural elucidation. Silver- PEG nanocomposite exhibits good antimicrobial and antitumor properties. The reduction of silver ions into silver nanoparticles was achieved in starch solution and poly (ethylene glycol)-4000(PEG -4000). The incorporation of silver nanoparticles in the PEG material was confirmed by Fourier Transform Infrared (FTIR) spectroscopy analysis. In addition, the formed silver nanoparticles have an average particle size of ~ 16.5nm was observed by Transmission Electron Microscopy (TEM). The anti-microbial silver- PEG nanocomposite was demonstrated significant effects against Escherichia coli (E. coli), Pseudomonas, Staphylococcus. Therefore, the present study explained the in situ preparation of Silver-poly ethylene glycol nanocomposite material and it was used in biomedical applications as antimicrobial packaging and wound dressing and antibacterial materials.