A novel silver nanoparticle doped diblock copolymer was synthesized by a 3‐step process via bulk polymerization process under nitrogen atmosphere. The above prepared polymer is characterized by FTIR spectroscopy, fluorescence emission spectroscopy, circular dichroism (CD), HRTEM, and FESEM. The sulphamicacid end capped poly(ε‐caprolactone) (P1) system exhibited higher tensile strength than the sulphamicacid bridged diblock copolymer (P2) and nano Ag doped sulphamicacid bridged diblock copolymer (P3) systems. The splinting activity of the diblock copolymers was tested and confirmed the low temperature splinting activity of the diblock copolymer. The Ag nanoparticle catalyzed catalytic reduction of p‐nitrophenol (NiP) was tested, and the apparent rate constant (kapp) was determined as 7.36 × 10−3 sec−1. The thermal studies were carried out by DSC and TGA methods. The TGA study declared that the P1 system has higher degradation temperature than the P2 and P3 systems. The P1 system has higher melting temperature (Tm) (75.5°C) than the P2 and P3 systems. The CD study indicated that the conformation of sulphamicacid was not changed even after the formation of nano Ag doped sulphamicacid bridged diblock copolymer.