In this work, surface plasmon resonance (SPR) was investigated over the effect of concentration of metal precursor, concentration of reducing agent, reaction time and pH on formation of silver nanoparticles (AgNPs) using biological method. In this method, Murdannia loriformis extract (MLE) was used as reducing agent and silver nitrate as metal precursor. SPR of Murdania loriformis silver nanoparticles (MLE-AgNPs) was measured through UV-vis spectrophotometer over a range of 380 – 800 nm wavelength. It was found that, as the concentration of MLE, pH and reaction time increases, the SPR peak of MLE-AgNPs at 430 - 490 nm also increases. However, for effect of concentration of metal precursor, the result showed that SPR peak of MLE-AgNPs increases when 1 to 5 mM of silver nitrate was used but decreases for 10 and 15 mM. Significant of this study is to identify the optimum conditions for synthesis of MLE-AgNPs.