In this study, the biocompatibility and antimicrobial activity of silver nanoparticles (Ag NPs) were evaluated in vitro and in vivo. The cytotoxicity of Ag NPs (average diameter: 2-5 nm) against CHO-K1 cells was determined via WST-8 assay, and their genotoxicity was examined via Salmonella typhimurium reverse mutation assay (Ames test). The acute toxicity and intracutaneous reactivity of Ag NPs were evaluated using animal models of mice and rabbits, respectively. The antibacterial effects of Ag NPs on the Gram (-) bacterial strains of Escherichia coli ATCC 8739 and Pseudomonas aeruginosa ATCC 9027 and on the Gram (+) bacterial strains of Staphylococcus aureus ATCC 6538p and Bacillus subtilius ATCC 6633 were determined by measuring the minimum inhibitory concentrations. The Ag NPs were highly cytotoxic to the L-929 cells at over 2 ppm but were non-cytotoxic at lower than 1 ppm. Moreover, the Ag NPs at 1 ppm or lower did not show genotoxicity, acute toxicity and intracutaneous reactivity. It was also found that the Ag NPs exerted effective antimicrobial activities on both the Gram (-) and (+) bacterial strains within the range from 0.06 to 0.98 ppm for 50% MIC.