The essential aim of the present work is to obtain antibacterial fabrics for medical uses. One of the most modern ways is nanotechnology. Biotechnology introduces also the most safe ways. So, synthesis of silver nanoparticles is the chief opportunity for the main our purpose. Ag nanoparticles is synthesized by use of fungi in the realm of nanobiotechnology. Four fungal strains were screened for their ability to produce extracellular silver nanoparticles. Hence, extensive experimental work was planned to find out the most suitable method for the preparation of silver nanoparticles. The output of this research calls for preparation of well stabilized silver nanoparticles solution with concentration of 2160 ppm and a mean diameter range of 8-15 nm. Silver nanoparticles solutions with such unique characteristics are unequivocally feasible for industrial applications. Efficiency of the nanosilver as antibacterial finish on the cotton fabric, expressed as bacterial reduction %, amounts to 97 % and 91 % for Gram +ve and Gram -ve bacteria, respectively.