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This paper describes a simple and efficient procedure based on the green method for the preparation of silver nanoparticles with a relatively narrow distribution in size. Stable silver nanoparticles have been synthesized by using Aegle marmelos (Vilvam) plant extract as both the reducing and stabilizing agents. The amount of silver nanoparticles synthesized and its qualitative characterization was done by UV-Visible (UV- Vis) absorption spectroscopy, X-ray diffraction (XRD), High Resolution Transmission Electron Microscopy (HRTEM) and Energy Dispersive X-ray analysis (EDAX or EDX). The UV- Visible spectrum of silver nanoparticle in aqueous solution shows an absorbance peak around 420 nm due to Surface plasmon resonance. The X-ray diffraction analysis revealed the face-centered cubic (fee) geometry of silver nanoparticles. The HRTEM images showed the spherical crystalline silver nanoparticles with a diameter of 0.9 1.2 nm. EDAX analysis was used to identify the presence of silver. Thermo gravimetric Analysis (TGA) measures the weight loss of silver nanoparticles as a function of temperature under a controlled atmosphere. The efficient antimicrobial activity of silver nanoparticles towards most of the tested fungal and bacterial culture was assessed. Also cytotoxicity was analyzed using cancer cell line.