The aim of this study was to assess the ability of selected strains of cyanobacteria and microalgae to biosynthesize silver nanoparticles (Ag-NPs) by using two procedures; (i) suspending the live and washed biomass of microalgae and cyanobacteria into the AgNO solution and (ii) by adding AgNO into a cell-free culture liquid. Ag-NPs were biosynthesized by 14 out of 16 tested strains. In most of the cases Ag-NPs were formed both in the presence of biomass as well as in the cell-free culture liquid. This indicates that the process of Ag-NPs formation involves an extracellular compound such as polysaccharide. TEM analysis showed that the nanoparticles were embedded within an organic matrix. Ag-NPs varied in shape and sizes that ranged between 13 and 31 nm, depending on the organism used. The antibacterial activity of Ag-NPs was confirmed in all but one strain of cyanobacterium ( sp. 37-2-1) which formed the largest particles.