This work reports the synthesis, characterization, and cytotoxicity of biogenic magnesium oxide nanoparticles (MgONPs) and nanosilver embedded magnesium oxide nanoparticles (Ag-MgONPs). The formation of nanoparticles (NPs) was confirmed by the indications of color changes and precipitations. Field emission scanning electron microscopy (FESEM), transmission electron microscopy (TEM) and X-ray diffraction (XRD) pattern studies showed the agglomeration colloids, porous, spherical, needle-shaped and crystal nature of MgONPs, whereas, the Ag-MgONPs was hexagonal, and spherical structured nanocrystals. Energy-dispersive X-ray fluorescence spectrometry (EDS) study indicated the existence of Ag, Mg, and O in NPs complex. The particle size analysis (PSA) revealed the mean size of 15.09 nm for Ag-MgONPs and 13.68 nm for MgONPs. Fourier transform infrared spectroscopy (FTIR) showed the peaks corresponding to amide, carboxylic acids, aromatics, alkene and esters from mycelial cell-free extract (MCFE). The absorbed and lattices oxygen of MgO was probably assigned in the formation of Ag-MgONPs as indicated by X-ray photoelectron spectroscopy (XPS). Cytotoxicity assay showed the Ag-MgONPs was stronger in inducing the prostate cancer (PC-3) cell death than the MgONPs. This work concluded that Ag-MgONPs could be potential therapeutics for cancer therapy. (C) 2019 The Society of Powder Technology Japan. Published by Elsevier B.V. and The Society of Powder Technology Japan. All rights reserved.