The superior antimicrobial properties of nanosilver (AgNP) led to its applications in healthcare and hygiene products. Herein, we report an efficient and simple green chemistry approach for the synthesis of AgNP by in‐situ reduction and capping by an eco‐friendly carbohydrate polymer, alginate dialdehyde (ADA). The UV‐Vis absorption maxima of the ADA‐capped silver nanoparticles (ADA‐AgNPs) showed a surface plasmon resonance peak at 411 nm, a peak characteristic to silver nanoparticles, within 30 min of the onset of the reaction. They were spherical, had an average diameter of 18.68±2.5 nm and had face‐centered cubic structure. Its storage stability was tested up to 90 days by monitoring its zeta potential and it was found to be stable around −35.1±1.71 mV. ADA‐AgNPs exhibited good antimicrobial properties against Staphylococcus aureus (S. aureus) and Escherichia coli (E. coli) and excellent antibiofilm activity against S. aureus at its minimum inhibitory concentration of 34 μg/mL. ADA‐AgNPs showed good anticancer action against HCT‐116 cells too.