Nano-scale silver particle stabilized by gelatin protein was prepared through the reduction of aqueous silver nitrate solution by sodium borohydride. Gelatin concentration was varied against a fixed concentration of silver nitrate to optimize the gelatin to metal ratio. Gelatin-protected Ag-nanoparticle was characterized by UV-VIS spectroscopy and transmission electron microscopy (TEM). All the samples exhibited similar yellow color with a characteristic plasmonic band of silver nanoparticles at 412 nm. TEM micrographs also showed the presence of nanoscale silver particles of approximately 3.9 nm. Since silver has strong bactericidal properties and at the same time relatively less toxic to human cell, silver in various forms is ideally suited for a wide range of applications in consumer, industrial and medical products The antimicrobial properties of gelatin-silver nanocomposites were tested by 'cup-plate zone of inhibition' method. The nanocomposites exhibited significant antibacterial and antifungal activity.