Synthesis of metallic and semiconductor nanoparticles through physical and chemical route is quiet common but biological synthesis procedures are gaining momentum due to their simplicity, cost-effectivity and ecofriendliness. Here, we report green synthesis of silver nanoparticles from aqueous solution of silver salts using yeast (Saccharomyces cerevisiae) extract. The nanoparticles formation was gradually investigated by UV-Vis spectrometer. X-ray diffraction analysis was done to identify different phases of biosynthesized Ag nanoparticles. Transmission electron microscopy was performed to study the particle size and morphology of silver nanoparticles. Fourier transform infrared spectroscopy of the nanoparticles was performed to study the role of biomolecules capped on the surface of Ag nanoparticles during interaction. Photocatalytic activity of these biosynthesized nanoparticles was studied using an organic dye, methylene blue under solar irradiation and these nanoparticles showed efficacy in degrading the dye within a few hours of exposure.