A novel functional material of beta-cyclodextrin (beta-CD) grafting cellulose beads containing immobilized silver nanoparticles (AgNPs) is presented in this paper. The morphology was characterized by scanning electron microscopy, energy-dispersive X-ray, and X-ray photoelectron spectroscopy. Phenolphthalein probe molecule technique was used to detect the activity of the grafting beta-CD, and the results demonstrated that the deposition of AgNPs had no influence on its encapsulation ability. Acid resistance of the AgNPs on the bead material was studied by atomic absorption spectrometry. The stability of the AgNPs was enhanced due to the grafting of beta-CD. Tube dilution method was applied to study the bacteriostatic effect, and the minimal inhibitory doses of the novel material against Escherichia coli and Staphylococcus aureus were 12.5 and 25 mg, respectively. The minimal bactericidal doses for the two bacteria were 25 and 25 mg, respectively.