In the present work, green synthesis of silver nanoparticles (AgNPs) using a natural phytochemical agent has been described. The aqueous latex from Musa paradisiaca peduncle has been utilized as reducing as well as stabilizing agent. The formation of AgNPs was optimized by varying latex and AgNO3 concentrations and finally reaction time. Ultraviolet-visible spectroscopic analysis showed the surface plasmon resonance peak between 350 and 450 nm confirms the formation of silver nanoparticles. X-ray powder diffraction analysis revealed the crystalline nature of AgNPs, Fourier transform infrared spectroscopy analysis revealed that AgNPs were stabilized by polyphenols and other aromatics present in the Musa Paradisiaca peduncle latex, while X-ray energy dispersive spectroscopy confirms the metallic nature. The field emission scanning electron microscopy and high resolution transmission electron microscopy showed the spherical shape of the particles and size distribution of AgNPs measured by dynamic light scattering which are in the range of 40 to 50 nm. The synthesized AgNPs showed photocatalytic activity on the degradation / removal of the methylene blue dye and the antimicrobial activity against Pseudomonas aeruginosa, Staphylococcus aureus and Klebseilla bacterial species.