Many microorganisms produce intracellular metal nanoparticles. Aqueous gold, when exposed to several actinomycetal strains, become thereby, leading to the formation of gold nanoparticles. The use of microorganisms in the synthesis of nanoparticles is emerging as an eco-friendly and exciting approach gold for recovery. Streptomyces hygroscopicus was used for the biosynthesis of gold nanoparticles. UV and visible spectroscopic studies of biofilms revealed better synthesis of nanoparticles. It was observed that better biosynthesis of gold nanoparticles occurred when cell biomass treated with 10 -3 and 10 -4 mM HAuCl 4 solution as compared to other dilutions. The pH 7.0 was found to be optimum for the biosynthesis of gold nanoparticles. The TEM study revealS that there was evidence of gold nanoparticles synthesized by S. hygroscopicus. The results demonstrate that spherical gold nanoparticles in the range of 10 to 20 nm were observed at pH value of 7.0. The actinomycetal biomass and various concentration of aqueous HAuCl 4 solution were incubated, it was found that 10 -4 concentration shows excellent colour of the actinomycetal biomass.