Nanocrystalline silver (Ag) and Ag containing nanostructure synthesized using various methods have been studied for their antimicrobial, wound healing, and anti-inflammatory efficacy. Among these, crystalline silver chloride (AgCl) nanostructures exhibit desirable properties for biological and biomedical applications. However, most of them are synthesized using hazardous agents and organic solvents, which has been limited for application in the biological field. A simple and environmentally friendly method was demonstrated for AgCl nanoparticles stabilized with chitosan oligomer (CHI-AgCl NPs) as both a resource of Cl ions and stabilizing agent with expectations of synergistic effects. The CHI-AgCl NPs stabilized by the chitosan oligomer had spherical morphology with a mean diameter of 42 ± 15 nm. Ag ions precipitated as AgCl in presence of Cl ions, which remained in the protonated amine group after HCl hydrolysis of the chitosan. Moreover, much of the amine and hydroxyl group bound to the AgCl NPs for growth and stabilization. These nanoparticles were characterized via various spectroscopic techniques, including UV-Vis spectrophotometry, X-ray photoelectron spectrometry, X-ray diffractometry, and transmission electron microscopy.