We present synthesis of silicon nanoparticles dispersed in toluene by laser ablation and studies on their optical limiting properties with nanosecond laser pulses at 532 nm. Silicon nanoparticles in toluene show better optical limiting compared to standard optical limiter fullerene C60 in toluene. Optical limiting threshold of silicon nanoparticles is about three times less than that of C60. Detailed studies using Z-scan experiments, angle dependent scattering, intensity dependent transmission and temporal profile measurements indicate that apart from non-linear scattering, nonlinear absorption and nonlinear refraction also contribute to the optical limiting behavior of silicon nanoparticles.