Now-a-days Nanotechnology plays an extensive role in the medicinal world. The present work is about the methods for the synthesis of nanoparticles, collection and maintainance of the sample, biomass production and about the different growth medium. Among the biological systems, the microorganisms are greatly desired for the synthesis of different nanoparticles because of their diversity richness and high tolerance under ambient conditions of temperature, pressure and acidity. Fusarium oxysporum has been reported to synthesize silver nanoparticles extracellularly. A detailed study on the extracellular biological synthesis of silver nanoparticles using the fungal species was studied and its antimicrobial effect against Gram positive and Gram negative bacteria by taking Bacillus subtilis and Pseudomonas aeuroginosa and fungus species Candida albicans and Zymocetes rouxii as model organisms are reported in this work.Thus the present study proved that the silver nanoparticles synthesized from F.oxysporum seem to be promising and effective antimicrobial agent against the pathogenic strains.