Bionanotechnology has emerged up as integration between biotechnology and nanotechnology for developing biosynthetic and environmental friendly technology for synthesis of nano materials. Silver has been known to have effective bactericidal properties for centuries. Nowadays, silver based topical dressings have been widely used as a treatment for infection in burns, open wounds, and chronic ulcer. As the pathogenic organisms are getting evolved day by day due to mutation and gaining antibiotic resistance, an important industrial sector of nanosciene deals with the preparation and study of nanoparticles in antibacterial clothings, burn ointments and coating for medical device. The size of nanomaterials is much smaller than that of most biological molecules and structures, therefore nanomaterials can be useful in both in vivo and in vitro biomedical research application. The purpose of the study is to synthesis and characterizes the fungal silver nanoparticles using F.oxysporum. Further investigation of the shape and size of fungal nanoparticle was done by X-ray diffraction and Scanning electron microscopic studies. A silver nanoparticle at different concentration was assessed for its antibacterial effect, against various bacteria.Further Silver based topical dressing incorporated with fungal nanoparticle was prepared and integrated into cotton band aid gauze. This study revealed the enhancement of the synthesis of silver nanoparticles by the reduction of aqueous silver ions by simultaneous release of extracellular metabolites from the culture of F. oxysporum. It also focuses on the potential application of silver nanoparticles in the medical field as a topical dressing against various wound pathogens.