This study presents a special, economically valuable, unprecedented eco-friendly green process for the synthesis of silver nanoparticles. The silver nanoparticles were obtained from a waste material with oil palm biosolid extract as the reducing agent. The use of the oil palm biosolid extract for the nanoparticle synthesis offers the benefit of amenability for large-scale production. An aqueous solution of silver (Ag+) ions was treated with the oil palm biosolid extract for the formation of Ag nanoparticles. The nanometallic dispersion was characterized by surface plasmon absorbance measuring 428 nm. Transmission electron microscopy showed the formation of silver nanoparticles in the range of 5-50 nm. Scanning electron microscopy-energy dispersive spectroscopy (SEM-EDS) and X-ray diffraction analysis of the freeze-dried powder confirmed the formation of metallic silver nanoparticles. Moreover, Fourier Transform Infrared Spectroscopy provided evidence of phenolics or proteins as the biomolecules that were likely responsible for the reduction and capping agent, which helps to increase the stability of the synthesized silver nanoparticles. In addition, we have optimized the production with various parameters. (C) 2010 American Institute of Chemical Engineers Biotechnol. Prog., 27: 273-279, 2011