Among bacteria Streptomyces aureofaciens are the cost effective source of biomaterial for biosynthesis of silver nanoparticle. In this study, silver nanoparticles were synthesized extracellularly using Streptomyces aureofaciens and evaluated for its wound healing activity. Two models i.e. excision wound model and thermal wound model were used for this purpose. Its antimicrobial activity was also evaluated by disc diffusion method. In dose at 20mg of silver nanoparticle showed significant reduction in excision wound within 8 days. The results suggested that the silver nanoparticles synthesized from Streptomyces aureofaciens possess effective wound healing activity when compared with silver nitrate.