Mushroom has been part of the human diet for thousands of years, and in recent times, the amounts consumed have risen greatly, involving a large number of species. Mushrooms used for nutritional and therapeutic purposes. In this study silver nanoparticles were synthesised using an edible mushroom (Agaricus bisporus) and forest mushroom (Ganoderma lucidum) extract. The synthesised nanoparticles were characterised by UV-vis spectroscopy, FTIR, powder XRD and SEM. Silver nanoparticles were synthesised at room temperature and at 60 °C. FTIR results recognised the presence of bioactive functional groups responsible for the reduction of silver nitrate to silver nanoparticles. From the XRD, it was observed that the nanoparticles are silver with an average size of 10-80 nm. The silver nanoparticles are explored for photocatalytic activity and biological activities such as in vitro antioxidant activity, anti-inflammatory activity and antimicrobial activity against Escherichia coli and Staphylococcus aureus organisms. 98% of textile dye (direct blue 71) degradation was noticed under UV light within 150 min for forest mushroom synthesised silver nanoparticles at room temperature. © 2017 Vietnam Academy of Science & Technology.