Biological routes of synthesising metal nanoparticles (NPs) using microbes have been gaining much attention due to their low toxicity and eco-friendly nature. Pseudomonas aeruginosa JP2 isolated from metal contaminated soil was evaluated towards extracellular synthesis of silver NPs (AgNPs). Cell-free extract (24 h) of the bacterial isolate was reacted with AgNO3 for 24 h in order to fabricate AgNPs. Preliminary observations were recorded in terms of colour change of the reaction mixture from yellow to greyish black. UV-visible spectroscopy of the reaction mixture has shown a progressive increase in optical densities that correspond to peaks near 430 nm, depicting reduction of ionic silver (Ag+) to atomic silver (Ag0) thereby synthesising NPs. X-ray diffraction spectra exhibited the 2θ values to be 38.4577° confirming the crystalline and spherical nature of NPs [9.6 - 26.7 (Ave. = 17.2 nm)]. Transmission electron microscopy finally confirmed the size of the particles varying from 5 to 60 nm. Moreover, rhamnolipids and proteins were identified as stabilising molecules for the AgNPs through Fourier transform-infrared spectroscopy. Characterisation of bacterial crude and purified protein fractions confirmed the involvement of nitrate reductase (molecular weight 66 kDa and specific activity = 3.8 U/mg) in the Synthesis of AgNPs.