Stabilizing mechanism of silica nanoparticles on gelled foam prepared with a very low concentration of polymer (xanthan gum) and surfactant (alpha-olefin sulfonate) is reported in the present study. The morphology of the foam at optimized composition reveals its improved stability, owing to the adsorption of silica nanoparticles on the bubble interface, which was further confirmed by microscopic images. The foam decay experiments confirmed the slower drainage of liquids through the strong and rough bubble interface in the presence of nanoparticles. The synergistic effects of nanoparticles-polymer-surfactant help to improvise rheology, viscoelastic properties and enhanced static proppant suspension capacity of the foam. Addition of nanoparticles helps in reducing the polymer concentration in the foam fluid without compromising in stability criterion. Thus, the prepared gelled foam offers less formation damage with improved rheology, and proppant carrying capacity without any limitation to low temperature application.