Nanoparticles mostly silver and gold have unique properties which help in their diverse applications like molecular diagnostics, as therapeutic agents, in medical devices for several medical procedures. The major methods used for their synthesis are the physical and chemical methods. These methods are expensive, not environment friendly and also may lead cytotoxicity. To overcome this problem, in present study the green synthesis method for the synthesis of silver nanoparticle was adopted using aqueous leaf extract and fruit pulp of Azadirachta indica (Neem) as a feasible alternative. In this method both extracts acted as a reducing as well as stabilizing agent that reduced silver nitrate (AgNO) and also acted as a protecting agent for nanoparticles. The formation of nanoparticles was assured by characterization with UV-vis spectroscopy, scanning electron microscopy (SEM). The absorbance of silver nanoparticles with neem aqueous leaf exract and neem fruit pulp was read at 450nm and 430nm respectively. SEM image shows that the nanoparticles synthesized by using neem aqueous leaf extract were spherical in shape with 28nm–41nm dimensions. The antimicrobial activity of as synthesized silver nanoparticles was tested against various bacteria like Gram positive, Gram negative forms and plant pathogens. The results confirmed that the tested bacteria were inhibited as indicated by higher zones of inhibition. These non-toxic nanoparticles synthesized in a simple, ecofriendly and cost effective manner by green synthesis may be suitable for the formulation of new types of bactericidal agents or therapeutic agents.