The synthesis of titanium dioxide nanoparticle (TiO2 NP) has gained importance in the recent years owing to its wide range of potential biological applications. The present study demonstrates the synthesis of TiO2 NPs by a metal resistant bacterium isolated from the coal fly ash effluent. This bacterial strain was identified on the basis of morphology and 16s rDNA gene sequence [KC545833]. The physicochemical characterization of the synthesized nanoparticles is completely elucidated by energy dispersive X-ray analysis (EDAX), Fourier transform infrared spectroscopy (FTIR) and transmission and scanning electron microscopy (TEM, SEM). The crystalline nature of the nanoparticles was confirmed by X-RD pattern. Further, cell viability and haemolytic assays confirmed the biocompatible and non toxic nature of the NPs. The TiO2 NPs was found to enhance the collagen stabilization and thereby enabling the preparation of collagen based biological wound dressing. The paper essentially provides scope for an easy bioprocess for the synthesis of TiO2 NPs from the metal oxide enriched effluent sample for future biological applications. (C) 2013 Elsevier Ltd. All rights reserved.