Colonization of skin wounds with high levels of microorganisms impedes the process of healing. The present study reports the synthesis of silver nanoparticles in the network of hydrogel comprising polyvinyl pyrrolidone blended with carboxymethyl cellulose and their treatment by gamma radiation for hydrogel formation for use as skin dressing for burn wound management. The blend was supplemented with various amounts of silver nitrate and gamma irradiated at 40 kGy for formation of silver nanoparticles. The fluid absorption capacity of the obtained composite hydrogels ranged from 460 ± 50% at 1 h to 1700 ± 100% in 24 h. The zone of inhibition ranged from 6 to 9 mm for bacterial strain Staphylococcus aureus and Pseudomonas aeruginosa in the presence of hydrogel containing 0.01% silver nanoparticles. More than 3 log reduction of tested wounds pathogens was observed with hydrogels containing 0.01% silver nanoparticles indicating microbicidal efficacy. Viable counts were not detected for bacterial and fungal strains Staphylococcus aureus, Pseudomonas aeruginosa, Escherichia coli and Candida albicans following treatment to 0.01% silver nanoparticle hydrogels for 1 to 5 h. The results of fluid handling capacity and antimicrobial efficacy demonstrate that obtained hydrogels with incorporated silver nanoparticles can be effectively used for controlling microbial infection and enhancing burn wound healing.