Biosynthesis of nanoparticles using plant extract is an eco- friendly approach which eliminates the need for using physical and chemical techniques. Nanoparticle use in medical field specially anti-diabetes and anti-cancer application has remained in recent studies owing to its large surface area to volume ratio, which imparts them the capability to interact with any kind of membrane and enzymes in a better manner. This paper presents the optimized synthesis of silver nanoparticles (Ag NPs) using lemongrass and visualizing its in-vitro antidiabetic potential. This study involves the comparative analysis of Conventionally heated (CH) and Microwave irradiated (MI) technique for the synthesis of Ag NPs from lemongrass for the first time. The crystalline nature of the nanoparticles was confirmed using X-ray diffraction assay (XRD) with average size range of 75 nm, the size, and shape of the nanoparticles were confirmed as spherical shaped using scanning electron microscope (SEM), atomic force microscopy (AFM) demonstrated aggregate formation of size range 138 nm with mean average size of individual nanoparticle as 80 nm, elements present in the nanoparticles confirmed using elemental dispersive analysis of X-ray (EDAX) and the functional groups of plant extract responsible for nanoparticles synthesis have been confirmed using Fourier transform infrared spectroscopy (FT-IR). Surface morphology and the dispersity were observed by Transmission electron microscopy (TEM) analysis. The anti-diabetic potential of nanoparticle synthesized was studied using amylase activity inhibition Assay and glucose diffusion-inhibitory Assay.