Nanobiotechnology is considered to be one of the fastest emerging fields. It is still a relatively new and exciting area of research with considerable potential for development. Among the inorganic nanomaterials, biogenically synthesized silver nanoparticles (bio-AgNPs) have been frequently used due to their unique physicochemical properties that result not only from their shape and size but also from surface coatings of natural origin. These properties determine antibacterial, antifungal, antiprotozoal, anticancer, anti-inflammatory, and many more activities of bio-AgNPs. This review provides the current state of knowledge on the methods and mechanisms of biogenic synthesis of silver nanoparticles as well as their potential applications in different fields such as medicine, food, agriculture, and industries.