In the present study, an eco-friendly process for the synthesis of nanomaterials using a fungus, Penicillium brevicompactum WA 2315 has been attempted. The fungus has been previously utilized for compactin production. Supernatant of seed culture was used for the biosynthesis of silver nanoparticles. The aqueous silver ions were reduced to silver metal nanoparticles when treated with the fungal supernatant. After 72 h of treatment, silver nanoparticles obtained were in the range of 23-105 nm as obtained from TEM. The nanoparticles were characterized by UV, FTIR, SEM, TEM and XRD. The use of supernatant of the seed media of the said fungus opens up the exciting possibility of rational strategy of biosynthesis of nanomaterials. (C) 2009 Elsevier Ltd. All rights reserved.