Medicinal plants have been discovered and used in traditional medical practice since ancient times. Hundreds of plants have been reported to possess antimicrobial properties. Medicinal plants are used as folk medicines because they are readily available and inexpensive with no side effects. This study reports the biosynthesis of AgNPs using plant extracts of Azadirachta indica. After exposing metal salt (silver nitrate) with freshly prepared plant extract, reduction of metal salt occurs and colour change after incubation indicates the formation of metal nanoparticles. Characterization of the synthesized nanoparticles was carried out using UV-visible spectrophotometer, which showed a silver surface plasmon vibration band near 390-450nm for silver, the average size of the synthesized particles and zeta potential were studied using dynamic light scattering methods. Transmission electron microscopy provided information on the size of the synthesized particles. Scanning electron microscopy reveled the morphology and arrangement of the particles. Fourier transform infrared spectroscopy (FTIR) analysis showed the presence of various functional groups, which may be responsible for the stability of synthesized particles. This approach will help in eco-friendly synthesis of nanoparticles with higher stability and applicability in various fields.