Objective: The current study focuses on optimization and ecologically innocuous green synthesis of silver nanoparticles (AgNPs) using tribal plant Caralluma umbellata and to study its potential as an antibacterial and antifungal agent.Methods: The synthesis of AgNPs were confirmed by the colour change of the stem extract from yellow to dark brown and by UV-Visible spectroscopy. The optimum conditions for synthesis of AgNPs were analysed using Response surface methodology (RSM) based Box-Behnken design (BBD) using Design Expert software (7.0.0 trial version). The AgNPs synthesized were characterized by Scanning electron microscope (SEM), Energy dispersive X-ray (EDX), Fourier transform infrared (FTIR) and X-ray diffraction (XRD) analysis. Further, antibacterial and antifungal activity were performed using well diffusion method for both plant extract and AgNPs.Results: The UV-Visible spectrum of AgNPs revealed characteristic peak at 425.5 nm. The crystalline nature of synthesized AgNPs was confirmed by XRD with average size 26 nm. SEM confirms the spherical shape of AgNPs and by EDX the presence of elemental silver was observed. The ability of the plant to produce both reducing and capping agents were confirmed by FTIR. The optimum conditions for synthesis of AgNPs were found to be 0.55 mmol AgNO3 concentration, 45 °C temperature and 24h reaction time. Both plant sample and synthesized AgNPs exhibited good antimicrobial activity where AgNPs showed superior efficacy as an antimicrobial agent over the other.Conclusion: From the results obtained, it can be deduced that both C. umbellata stem extract and synthesized AgNPs can act as potent antimicrobial agent. But the synthesized AgNPs is more potent against bacteria and fungus.