Nanotechnology is a rapidly developing field because of its wide range of applications in science, nanoscience and biotechnology. Nanobiotechnology deals with nanomaterials synthesised or modified using biotechnology. Fungi are used to synthesise metal nanoparticles and they have vast applications in wound healing, pathogen detection and control, food preservation, textiles, fabrics, etc. The present review describes the different types of fungi used for the biosyntheses of silver nanoparticles (AgNPs), along with their characterisation and possible biological applications. AgNPs synthesised by other physical and chemical methods are expensive and have toxic substances adsorbed onto them. Therefore, green, simple and effective approaches have been chosen for the biosynthesis of AgNPs, which are very important because of their lower toxicity and environmentally friendly behaviour. AgNPs synthesised using fungi have high monodispersity, specific composition and a narrow size range. In this regard, among the different biological methods used for metal nanoparticle synthesis, fungi are considered to be a superior biogenic method owing to their diversity and better size control. To further understand the biosynthesis of AgNPs using various fungi and evaluate their potential applications, this review discusses the antimicrobial, antibacterial, antifungal, antiviral, antidermatophytic, anti-inflammatory, antitumor, hepatoprotective, cytotoxic, hypotensive, and immunomodulatory activities of these AgNPs. The synthesis of AgNPs using fungi is a clean, green, inexpensive, eco-friendly, reliable, and safe method that can be used for a range of applications in real life for the benefit of human beings.