The present study six fungi were isolated from soil by spread plate technique. Among them Aspergillus terreus, Aspergillus sydowi, Aspergillus fumigatus, Penicillium funiculosum and Sphaerulina albispiculata and Masoniella grisea was identified by Lactophenol cotton blue mounting. To induce the biosynthesis of silver nanoparticles (AgNO3) using Sphaerulina albispiculata and Masoniella grisea and evaluated their antimicrobial potential. The characterization of silver nanoparticles on these fungi by UV – FTIR and SEM analysis to confirm the reduction and it is believed that protein might have played an important role in the stabilization of silver nanoparticles. The synthesized AgNO3) were found to be extracellular, polydispersed spherical or hexagonal particles ranging from 6- 12 nm in size. Antimicrobial activity was performed using a agar well diffusion method against Vibrio cholerae ,Staphylococcus aureus and Salmonella typhi.