In the healthcare sector, the production of bioactive silver nanoparticles (AgNPs) with antimicrobial properties is of great importance. In this study, a novel bacterial strain,
Paenibacillus
sp. MAHUQ-63, was identified as a potential candidate for facile and rapid biosynthesis of AgNPs. The synthesized AgNPs were used to control the growth of human pathogens,
Salmonella
Enteritidis and
Candida albicans
. The bacterial culture supernatant was used to synthesize the nanoparticles (NPs). Field emission transmission electron microscope examination showed spherical-shaped NPs with 15–55 nm in size. Fourier transform-infrared analysis identified various functional groups. The synthesized AgNPs demonstrated remarkable activity against
S.
Enteritidis and
C. albicans
. The zones of inhibition for 100 µl (0.5 mg ml
−1
) of AgNPs against
S.
Enteritidis and
C. albicans
were 18.0 ± 1.0 and 19.5 ± 1.3 mm, respectively. The minimum inhibitory concentrations were 25.0 and 12.5 µg ml
−1
against
S.
Enteritidis and
C. albicans
, respectively. Additionally, the minimum bactericidal concentrations were 25.0 µg ml
−1
against both pathogenic microbes. The field emission scanning electron microscopy analysis showed that the treatment of AgNPs caused morphological and structural damage to both
S.
Enteritidis and
C. albicans
. Therefore, these AgNPs can be used as a new and effective antimicrobial agent.