We have synthesized highly stable silver nanoparticles in aqueous solution at room temperature by standard reduction method using de-oxyribo nucleic acid (DNA) as a stabilizing agent. The nonlinear optical properties of above nanoparticles were investigated using Z-scan technique at 532n m.The obtained nonlinear absorption and refraction coefficient is found to be large. The imaginary part of third order susceptibility depends on the concentration of DNA at low pu mp power of 50MW/ cm 2 .It is observed that at high pump power of175MW/ cm 2 , the imaginary part of third order susceptibility does not depend on the concentration of the DNA. The imaginary parts of third order nonlinear optical susceptibility measured by Z-scan technique revealed that silver nanoparticles in DNA template are potential candidate for optoelctronic device applications.The silver nanoparticles in DNA temp late show good optical limit ing property.