The current situation involves an increase in interest in nanotechnology, in particular the ways in which it can be applied in the commercial and medical fields. However, traditional methods of synthesizing nanoparticles have some drawbacks, including the generation of harmful byproducts, high energy consumption, and cost. As a result, researchers have shifted their focus to “green” nanoparticle synthesis to circumvent these drawbacks. Because of their exceptional physiochemical properties, silver nanoparticles (Ag Nps) are the noble metal nanoparticles that are used most frequently. The green approach to Ag NP synthesis is environmentally friendly, non‐toxic, and cost‐effective, and it makes use of a variety of biological entities. Cyanobacteria, in particular, have garnered the most attention because of the abundance of bioactive substances that they contain, which serve both as reducing agents and as stabilizing agents during the process of biosynthesis. This review article discusses the current state of cyanobacteria‐mediated Ag NP synthesis, the potential mechanisms that are involved, nanoparticle characterization, the various applications of Ag NP in different fields, and their prospects.