Present communication reports microwave-assisted process to decorate single-walled carbon nanotubes (SWCNTs) with silver nanoparticles (Ag-NPs) to induce excellent and durable anti-bacterial activity in cotton fabric. Pristine SWCNTs were functionalized (f-SWCNTs) through acidic treatment for nucleation, followed by reduction of silver ion by microwave heating to produce Ag-NPs decorated SWCNTs (Ag-SWCNTs). Functionalization and decoration of Ag-NPs on SWCNTs were characterized by FTIR, XRD, RAMAN spectroscopy and FE-SEM. Microwave irradiation time was optimized and it was observed that complete reduction of Ag ions on SWCNTs from its precursor (AgNO3) took place within 40 s of microwave irradiation time. For antibacterial activity measurement and comparison, pristine SWCNTs, Ag-NPs and Ag-SWCNTs composite were individually coated on different cotton fabrics via dip-dry-curing process. Deposition of these particles on cotton fabrics were confirmed by FE-SEM and Raman spectroscopy. Antibacterial property of all coated fabrics was evaluated qualitatively against Staphylococcus aureus (S. aureus) as gram positive and Escherichia coli (E.coli) as gram negative pathogenic bacteria. It was observed that the fabric coated with Ag-SWCNTs show excellent antibacterial activity against both types of bacteria. Sufficient antibacterial activity of Ag-SWCNTs coated fabrics was observed even after 20 washing.