Nanotechnology has provided a platform for altering, modifying, and developing metal properties to nanoparticles with promising applications. This study aimed to produce functionalized and biocompatible silver nanoparticles (AgNPs) using cellular extracts of endophytic Fusarium oxysporum-NFW16 isolated from Taxus fauna and evaluate its antibacterial potential. Under optimized reaction conditions, welldispersed and extremely stable AgNPs were synthesized in 1 hr. AgNPs were characterized through UV-visible spectrophotometry (at 423 nm), and scanning electron microscopy, energy dispersive X-ray spectroscopy, X-ray diffraction (XRD), and Fourier transform infrared spectroscopy (FTIR). The obtained AgNPs were spherical, monodispersed, and size was $30-36.1 nm. Strong peaks of XRD (311), ( 220), (200), and (111) matched to silver plane's diffraction facets. FTIR spectra at 1,650, 2,950, and 1,400 cm À1 confirmed the capping of AgNPs with phenolic compounds and compounds having primary amines. The AgNPs showed 100 μg/ml of minimum inhibitory concentration against methicillin-resistant Staphylococcus aureus (MRSA). In addition, AgNPs showed a synergistic effect with both vancomycin and ciprofloxacin against MRSA (25%), Pseudomonas aeruginosa (50%), and pus isolated Escherichia coli (50%).Moreover, AgNPs impregnated cotton and bandage showed in vitro antibacterial potential against American Type Culture Collection and skin-associated clinical pathogenic bacteria. Findings showed that endophytic fungi are the potential source for AgNPs synthesis that are effective against multidrug-resistant bacteria and the development of antimicrobial textile finishes.