In the present study, silver nanoparticles were synthesized by biological methods using Momordica charantia extract. UV–Visible absorption spectroscopy, Fourier Transfer Infra Red (FTIR) and Scanning Electron Microscope (SEM) were used for characterization of synthesized silver nanoparticles. Diabetes is the most common metabolic disorder in human and it is characterized by hyperglycemia, due to relative or absolute lack of insulin. The approaches of nanoscale and the percentage of atoms at the surface of a material becomes significant. Silver nanoparticles were screened for inhibitory activity of alpha amylase enzyme. The synthesized Silver Nanoparticles showed significant effect on Antidiabetic activity. Acarbose was used as a standard drug. The IC50 value for Bittergourd extract was found to be 49.86μg/ml where as for acarbose it is 88.3μg/ml.