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We have synthesized silver nanoparticles using the leaf extract of Henna (Lawsonia inermis). The synthesized silver nanoparticles were characterized using UV – visible spectroscopy, Atomic Force Microscopy and FTIR. Effect of leaf extract concentration, pH and reaction temperature on the formation of silver nanoparticles has been analysed by studying the variations in absorbance and wavelength of SPR of silver nanoparticles. The silver nanoparticle increases photoabsorption due to Localized Surface Plasmon Resonance. In this current study, we have fabricated Photo Enhanced Dye Sensitized Solar Cell (PE – DSSC) using the Henna dye reduced silver nanoparticles as sensitizer to improve photocurrent. We have obtained photocurrent output of Henna reduced silver nanoparticle dye sensitized solar cell.