Grafting of quaternary nitrogen atoms into the backbone of polymer is an efficient way of developing new generation antimicrobial polymeric wound dressing. In this study, an elastic, non-adhesive and antimicrobial transparent hydrogel based dressing has been designed, which might be helpful for routine observation of wound area without removing the dressing material along with maintaining a sterile environment for a longer period of time. Green synthesized silver nanoparticles have been loaded into the quaternized PVA hydrogel matrix to improve its antimicrobial property. Silver nanoparticles loaded quaternized PVA hydrogel showed enhanced mechanical and swelling properties compared to native quaternized PVA hydrogel. Release kinetics evaluated by atomic absorption spectroscopy revealed that the release mechanism of silver nanoparticles from the hydrogel follows Fickian diffusion. Antimicrobial efficacy of the hydrogels was evaluated by disk diffusion test on Pseudomonas aeruginosa, Staphylococcus aureus and Escherichia coli. After 96 h of release in phosphate buffer, the growth inhibition zone created by silver nanoparticless loaded quaternized PVA hydrogel is comparable to that created by ampicillin. These observations assert that the silver nanoparticles loaded quaternized PVA hydrogel acts as a reservoir of silver nanoparticles, which helps in maintaining a sterile environment for longer time duration by releasing Ag nanocrystallite in sustained manner.