The objective of this work is the fabrication of poly(l‐lactide‐co‐glycolide) or PLGA (with LA/GA ratios of 50/50 and 75/25) nanofibers containing silver nanoparticles (AgNPs) by the method of electrospinning. The incorporation of AgNPs in PLGA was carried out in three different concentrations (1, 3, 6 w/w %).The electrospun nanofibers were evaluated for their morphology by scanning electron microscopy and their fiber diameters ranged between 487 and 781 nm. Integration of AgNPs within the fibers was verified by spectroscopy studies, while the mechanical properties of the developed fibers were found comparable to the mechanical properties of the human skin. Proliferation of human dermal fibroblasts (HDF) demonstrated minimal cytotoxicity on fibers containing 1 wt % and 3 wt % of AgNPs, while 6 wt % of AgNPs inhibited cell proliferation. Antimicrobial activity was studied using three different strains of Gram‐positive and Gram‐negative bacteria. Results of the HDF proliferation and antimicrobial studies showed that the electrospun PLGA75/25 containing 3 wt % AgNP can function as a suitable substrate for wound dressing, compared to the other scaffolds of this study. © 2015 Wiley Periodicals, Inc. J. Appl. Polym. Sci. 2015, 132, 42686.