• [] The invention provides to the development of methods employed for synthesizing silver nanoparticles using mycorrhizal fungus Tricholoma crassum (Berk.) Sacc. The procedure for synthesizing silver nanoparticles is by making of cell filtrate from mycelial mat of the above organism and thereafter exposing it to silver nitrate solution with definite concentration & under specific conditions. The extracellular synthesis of the fungal enzyme and metabolites reduces the silver ions to nanoparticles. The silver nanoparticles thus produced is of diameter ranging from 5-50 nm they were mostly spherical. • [] This inventions also correlates to characterization of silver nanoparticles in terms of shapes, sizes, particle distribution. It is monodispersive without aggregation ,spherical to quasi-spherical with average size of 21.91nm. • [] Further this invention also illustrates to its antimicrobial properties as a potent agent against multidrug resistant bacteria of both plant and animal. It also has antifungal properties. This holds good for both pharmaceutical and biopesticidal industries. It is both cost-effective and eco-friendly. • [] The silver nanoparticle of this invention can be prepared under lower temperature conditions. Specifically its reaction temperature is 28°C which is less than 90°C. Even it can be used in both conductive coatings, and adhesives.