Biosynthesis of silver nanoparticles was achieved using cell filtrate from submerged fermentation of Fusarium oxysporum. It was found that AgNO3 reduced to Ag nanoparticles when exposed to the cell filtrate and the colour of solution was dark brown with absorbance peak at 430 nm wavelength. TEM micrograph showed spherical AgNPs with range 10-25 nm in dimension and was well dispersed. AgNPs show high stability in solution due to biological stabilizing and capping agents released from fungus, and have negative charge -25mv.Biosynthesized AgNPs have high potential antibacterial and antifungal activity, highest inhibitory zone was (27) mm against Candida albicans. The synergistic effect of AgNPs gave highest fold increase (10) against E. coli, followed by (5) fold against Staphylococcus auras using Azithromycin and levofloxacin as standard antibiotics respectively.