We present the microbial green synthesis of silver nanoparticles (NPs) by Streptomyces ghanaensis VITHM1 strain (MTCC No. 12465). The secondary metabolites in the cell free supernatant of this bacterium when incubated with 1 mmol/L AgNO3, mediated the biological synthesis of AgNPs. The synthesized AgNPs were characterized by UV-visible spectrum, X-ray diffraction (XRD), atomic force microscope, scanning electron microscopy equipped with energy dispersive spectroscopy, transmission electron microscopy, FT-IR spectroscopy, dynamic light scattering and zeta potential. They were highly stable and, spherical in shape with the average size of 30‒50 nm. The secondary metabolites involved in the formation of AgNPs were identified gas chromatographymass spectrography. The 3D structure of the unit cell of the synthesized AgNPs was determined using XRD data base. The synthesized AgNPs exhibited significant antibacterial activity against tested bacterial pathogens, and did not show haemolysis on human red blood cells. This green synthesis could provide a new platform to explore and use AgNPs as antibacterial therapeutic agents.[Figure not available: see fulltext.] © 2016, Higher Education Press and Springer-Verlag Berlin Heidelberg.