The green synthesis of nanoparticles is an expending research area due to the potential application for the development of novel techniques. The evaluation of multidrug resistance against various types of pathogenic microorganism should be encouraging the search for effective antimicrobial agents, from alternative diverse sources of biogenic nanoparticles. The results obtained in this study suggest that plant has potent anti-inflammatory, antimicrobial, antidiabetics, antidepressant, antioxidant and also responsible for the production of nanoparticles. In this study the green synthesis of iron oxide nanoparticles was carried out using peels extract of Punica granatum as a reducing agent and their anti-candidiasis activity for oral diseases. Capping and reducing of synthesized nanoparticles was found with medicinally important molecules present in the peels aqueous extract of this plant and these molecules could enhanced their value for various application. The presence of various phytochemicals viz. alkaloids glycosides, carbohydrates, steroids, phytosterol, flavonoids, protein and amino acid, phenol and tannins, and saponins were investigated by following standard biochemical method and further characterization of synthesized iron oxide nanoparticles was done by using UV-visible spectroscopy, X-ray Diffraction patterns (XRD), Scanning Electron Microscopy (SEM), Transmission Electron Microscopy (TEM). The anti-candidiasis activity of these nanoparticles was studied against Candida albicans and Candida tropicalis. SEM and TEM analysis of nanoparticles shows most of the shape are particles spherical in shape and average of particles size was found to be very in the range of 40-100 nm respectively. TEM and SEM micrograph obtained by using this technique revealed that generation of aggregated poly and mono dispersed in nature of nanoparticles. The peels aqueous extract of Punica granatum quickly reduced particles and enhances synthesis of iron oxide nanoparticles with highly antimicrobial activity.