Applying the concept of ethnobotany, plant extract was taken into consideration as an alternative to chemicals synthesis of silver nanoparticle. The extracts from the chilli seeds were used to synthesize silver nanoparticles (AgNPs). In this study two species of chilli, Capsicum annuum and Capsicum frutescens, have been used to analyse the characteristics of the bio-active compounds found in their seeds. Analysis of the bioactive compound was performed by using Soxhlet extraction with solvents followed by Thin Layer Chromatography (TLC), High Performance Liquid Chromatography (HPLC) and GC-MS. Furthermore, green synthesis of nanoparticles with chilli extracts was carried out using silver nitrate to detect its antimicrobial activity. The characterizations of both the nanoparticles were carried out using UV-Vis Spectroscopy, Atomic Force Microscopy (AFM), Fourier Transform Infrared Spectroscopy (FTIR), X-Ray Diffractometry (XRD), Scanning Electron Microscopy (SEM) and energy Dispersive X-Ray Spectroscopy (EDX). Antimicrobial activity against clinical pathogens and the antioxidant assay using DPPH and FRAP assays were performed. The cytotoxicity effects on osteosarcoma cell lines were also evaluated with the synthesized AgNPs. © 2015 ACG Publications. All rights reserved.