A novel hydrogel was synthesized by grafting of poly(3-sulfopropyl methacrylate) (PSPMA) onto carboxymethyl cellulose (CMC) via the free radical polymerization technique, using N,N´-methylene bisacrylamide (MBA) as crosslinker and potassium persulphate (KPS) as initiator. CMC-g-P(SPMA) hydrogel and glucose were used as stabilizing and reducing agents, respectively, for the preparation of silver nanoparticles loaded hydrogel by a facile and green technique. The synthesized CMC-g-P(SPMA)/Ag nanocomposite was characterized by FTIR, UV-Vis spectroscopy, XRD, TGA, TEM and SEM techniques. The formed silver nanoparticles exhibited spherical shape and were homogenously dispersed in the hydrogel. These particles had an average particle size of 18 nm, as calculated from TEM results. The antibacterial and antifungal performance of the CMC-g-P(SPMA)/Ag nanocomposite was investigated and the results recommended the nanocomposite as an efficient and eco-friendly antibacterial and antifungal material.