In this study, photocatalytic activity of titanium dioxide was modified by doping with silver metal. This was done by simple preparation procedure at room temperature. Different preparation conditions were studied and their effects on photocatalytic activity were investigated. The obtained nanopowders were characterized using X‐ray diffraction (XRD), X‐ray fluorescence (XRF), specific surface area measurement, UV‐Visible absorption, and transmission electron microscope (TEM). Photocatalytic activities of the prepared samples under simulated sunlight were evaluated with respect to their efficiencies for the degradation of five pharmaceutical compounds commonly present in hospital wastewater. Prepared samples showed very high efficiency for photodegradation of the studied pharmaceutical compounds. Maximum photodegradation rate of the simulated hospital wastewater was obtained using 1000 ppm of the material with 0.1% Ag/TiO2 (weight ratio) calcined at 300°C and pH 5. However, the best pH of the degradation of each pharmaceutical compound varies according to the pKa. © 2013 American Institute of Chemical Engineers Environ Prog, 33: 886–894, 2014