Stable silver nanoparticles (AgNPs) were prepared from the reduction of silver ions by sodium borohydride in presence of shape controlling cationic cetyltrimethylammonium bromide (CTAB) at room temperature. The intensity and position of surface plasmon resonance (SRP), morphology depends on the concentrations of CTAB. The complex forming tendency of CTAB with positive head group of surfactant and borohydride anion (BH4−) was responsible for pre-, and post-micellar effect. The values of BH4−-CTAB binding constant (Ks = 33.6 × 104 mol−1 dm3) and rate constant in micellar pseudo phase (km = 5.5 × 10−5 s−1) were calculated. Catalytic role of CTAB discussed in term of pseudo-phase model. The silver soles were unstable at higher [BH4−] (≥14.0 × 10−5 mol/L). Transmission electron microscopic images indicate that the AgNPs are roughly spherical and poly dispersed. The oxidative dissolution of silver nanoparticles was very slow. The [BH4−] has significant impact on the sensing properties of AgNPs. The dissolution rate increases drastically by adding hydrogen peroxide. Scavengers quenched the oxygen radical reactive species (hydroxy radical and superoxide) and decreased the hydrogen peroxide catalyses rate of AgNPs.