Green synthesis of silver nanoparticles makes use of plant constituents, like carbohydrates, fats, enzymes, flavonoids, terpenoids, polyphenols, and alkaloids, as reducing agents to synthesize silver nanoparticles. The present study for the first time utilized seed extract of Tectona grandis (teak) for reduction of 1 mM silver nitrate solution to silver nanoparticles. The method proved to be very simple, cost-efficient, and convenient. Synthesis of nanoparticles was confirmed by visual detection in which the colorless solution gets changed to a brown-colored solution. Further characterization was done by UV-visible spectroscopy, XRD, FTIR analysis, SEM/EDS, FESEM, and TEM. Size of silver nanoparticles was found to be 10-30 nm approximately as determined by transmission electron microscopy (TEM). Energy-dispersive spectra (EDS) revealed that nanoparticles contain silver in its pure form. Well diffusion method showed the antimicrobial effect of AgNPs on different microorganisms with the zone of inhibition of 16 mm for Staphylococcus aureus, 12 mm for Bacillus cereus, and 17 mm for E. coli when 50 μg of AgNPs was used. Minimum inhibitory concentration was found to be 5.2, 2.6, and 2.0 μg/ml for Bacillus cereus, Staphylococcus aureus, and E. coli respectively. Mode of action of antimicrobial activity of nanoparticles was investigated by determining leakage of reducing sugars and proteins, suggesting that AgNPs were able to destroy membrane permeability.