Metal nanoparticles have been studied and applied in many areas including the biomedical, agricultural, electronic fields, etc. Several products of colloidal silver are already on the market. Research on new, eco-friendly and cheaper methods has been initiated. Biological production of metal nanoparticles has been studied by many researchers due to the convenience of the method that produces small particles stabilized by protein. However, the mechanism involved in this production has not yet been elucidated although hypothetical mechanisms have been proposed in the literature. Thus, this review discusses the various mechanisms provided for the biological synthesis of metal nanoparticles by peptides, bacteria, fungi, and plants. One thing that is clear is that the mechanistic aspects in some of the biological systems need more detailed studies.