The use, formation and manipulation of materials at nanoscale level is known as Nanotechnology, which change their properties at nanoscale. The nanoscale materials can be synthesized by using physical and chemical processes. Size, shape, morphology, stability and properties of nanoparticles can have direct impact on their potential applications. The design of an eco-friendly, time effective and economic synthesis method with easy control over their essential properties has become a leading area of research. Now a days, the biological entities are employed to improve nanoparticles production without the use of any harsh chemicals. The biological synthesis of nanoparticles is an eco-friendly method. Nanoparticles have broad range of applications such as optical, electronics, electrical, medical, environment, textile, energy science, optoelectronics, catalysis, single electron transistors, light emitters, nonlinear optical devices, photo-electrochemical applications, cosmetics and food industries owing to their unique physiochemical properties. The aim of this critical review is to provide an insight into the ecofriendly synthesis of nanoparticles with significant applications in various fields.