Nanochemistry is relatively a new area of science arisen in the last decade of past century after discovery of fullerenes and nanotubes. Metal nanoparticles can be prepared by physical, chemical and biological routes; the first one is a physical approach that utilizes several methods such as evaporation/ condensation and laser ablation. Various metals like copper, titanium, gold, silver and iron were used for the synthesis of nanoparticles. Among the noble metals, silver nanoparticles have become the focus of intensive research due to its wide range of applications for many sectors of life and Industry. In this work, we describe a cost effective and environment friendly technique for green synthesis of silver nanoparticles from 1 mM AgNO3 solution through the extract of Hydrophila auriculata leaf as it is acts as a reducing as well as capping agent. Nanoparticles were characterized using UV-Vis absorption spectroscopy and SEM analysis showed the average particle size range10-40 nm with higher density polydispersed spherical in shape. The synthesized silver nanoparticles exhibited potential antiinflammatory activity.