The Development of biologically inspired experimental processes for the synthesis of nanoparticles is evolving into an important branch of nanotechnology. The work presented here with the biosynthesis of silver nanoparticles using Moringa oleifera leaf extract as reducing and stabilizing agent and its application in nonlinear optics. The aqueous silver ions when exposed to Moringa oleifera leaf extract are reduced resulting in silver nanoparticles demonstrating the biosynthesis. The silver nanoparticles were characterized by UV-Visible, X-ray diffraction (XRD), Fourier transform infra-red spectroscopy (FT-IR) and transmission electron microscopy (TEM) techniques. TEM analysis shows a dispersion of the nanoparticles in a range of 5-80 nm with the average around 46 nm and are crystallized in face centred cubic symmetry. To show that these biosynthesized silver nanoparticles possess very good nonlinear properties similar to those nanoparticles synthesized by chemical route, we carried out the Z-scan studies with a 6 ns, 532 nm pulsed laser. We estimated the nonlinear absorption coefficient and compare it with the literature values of the nanoparticles synthesized through chemical route. The silver nanoparticles suspended in solution exhibited reverse saturable absorption with optical limiting threshold of 100 mJ/cm 2. © 2011 American Scientific Publishers.