Biogenic synthesis of metal nanoparticles has been well proved by using bacteria, fungi, algae, actinomycetes, plants, etc. Among the different microorganisms used for the synthesis of metal nanoparticles, actinomycetes are less known. Although, there are reports, which have shown that actinomycetes are efficient candidates for the production of metal nanoparticles both intracellularly and extracellularly. The nanoparticles synthesized by the members of actinomycetes present good polydispersity and stability and possess significant biocidal activities against various pathogens. The present review focuses on biological synthesis of metal nanoparticles and their application in medicine. In addition, the toxicity of these biogenic metal nanoparticles to human beings and environment has also been discussed.