Metal nanoparticles are being extensively used in a variety of sectors, including drug delivery, cancer treatment, wastewater treatment, DNA analysis, antibacterial agents, biosensors and catalysts. Unlike chemically produced nanoparticles, biosynthesized metal nanoparticles based on green chemistry perspectives impose limited hazards to the environment and are relatively biocompatible. This review is therefore focused on green methods for nanoparticle synthesis by emphasizing on microbial synthesis using bacteria, fungi, algae, and yeasts, as well as phytosynthesis using plant extracts. Furthermore, a detailed description of bioreducing and capping/stabilizing agents involved in the biosynthesis mechanism using these green sources is presented.