As the field of nanomedicine develops and tackles the recent surge in antibiotic resistance, there is a need to have an in-depth understanding and a synergistic view of research on the effectiveness of a metal nanoparticle (NP) as an antibacterial agent especially their mechanisms of action. The constant development of bacterial resistance has led scientists to develop novel antibiotic agents. Silver, gold and its bimetallic combination are one of the most promising metal NPs because they show strong antibacterial activity. In this review we discuss the mode of synthesis and the proposed mechanism of biocidal antibacterial activity of metal NPs. These mechanisms include DNA degradation, protein oxidation, generation of reactive oxygen species, lipid peroxidation, ATP depletion, damage of biomolecules and membrane interaction.