Nanotechnology is most promising arena for generating new applications in medicine and advancing rapidly due to the great progress achieved in various fileds including electronics, machanics, cosmetics, food, etc. In order to successfully bifunctionalise nanoparticles for a given biomedical application, a wide range of  chemical, physical and biological factors are to be taken into account. Silver nanoparticles (AgNPs) at nanoscale exhibits strong antibacterial activity vowing to their large surface to volume ratios and crystallographic  surface structure. Nanosilver particles have been widely used in a range of biomedical applications including diagnosis, treatment, medical device coating, drug delivery and personal health care products. With the growing application of nanosilver particles in medical contexts, it is becoming necessary for a better understanding the mechanisms of action, biological interactions and their potential toxicity on exposure. This review aims to provide critical assessment of the current understanding of antibacterial activity, biomedical and clinical applications of silver nanoparticles.