Nanomaterials, particularly nanoparticles (NPs), have emerged as forefront materials of the 21st century due to their unique properties and potential applications. Silver nanoparticles (AgNPs) are among the most attractive inorganic nanomaterials, widely used due to their significant antibacterial properties, broad-spectrum activity, and potential applications across various fields, including health, food storage, textiles, and environmental solutions. AgNPs exhibit a large surface-area-to-volume ratio, enabling enhanced interaction with bacterial cells, making them effective in medical and industrial applications. Despite concerns over their toxicity, AgNP-based products have been approved by multiple regulatory bodies. Nanoparticle synthesis methods are generally divided into physical, chemical, and biological approaches. Although physical and chemical methods are efficient, they involve toxic chemicals and energy-intensive processes. Biosynthesis, particularly plant-based, offers an eco-friendly alternative, reducing the environmental and health risks associated with chemical agents. The review also explores the therapeutic potential of AgNPs in drug delivery systems, especially in topical formulations like nanoemulsions, solid lipid nanoparticles (SLNs), and nanostructured lipid carriers (NLCs). These nanocarriers enhance drug stability, skin penetration, and controlled release, making them ideal for dermal and transdermal delivery. Moreover, the use of AgNPs in dentistry is highlighted for their bactericidal properties, which help prevent infections and implant failure, with the potential for enhancing therapeutic outcomes without common drawbacks like tooth staining. Overall, AgNPs exhibit promising applications in biomedical, pharmaceutical, and dental fields, and their novel functionalities continue to advance the development of nanotechnology-driven solutions.