Microbial synthesis of highly structured metal sulfide and metallic nanoparticles is a benign approach of nanomaterial synthesis. Various microbes have been exploited for nanoparticle synthesis, but nanofabrication using haloarchaea is still in nascent stages. Here, we report the intracellular synthesis of hexagonal needle-shaped tellurium nanoparticles with an aspect ratio of 1:4.4, by the haloarcheon Halococcus salifodinae BK3. The isolate was able to tolerate up to 5.5 mM K2TeO3. The yield of tellurium nanoparticles was highest when the culture was exposed to 3 mM K2TeO3, even though the isolate exhibited slightly decreased growth rate as compared to the culture growing in the absence of K2TeO3. The enzyme tellurite reductase was responsible for tellurite resistance and nanoparticle synthesis in H. salifodinae BK3. These tellurium nanoparticles exhibited anti-bacterial activities against both Gram-positive and Gram-negative bacteria, with higher antibacterial activity towards Gram-negative bacteria. This is the first report on the synthesis of tellurium nanoparticles by Halophilic archaea.