Fabrication of silver nanoparticles inside soda glass by Ar+ irradiation at an incidence angle of 40° has been presented. Emergence of surface plasmon resonance peak at 410.5 nm for the specimen fabricated by implantation to 5×1016 Ar+ cm−2 at an incidence angle of 40° in optical absorption spectrum provides the signature of silver nanoparticles and the data obtained was further analyzed to evaluate refractive index, optical energy gap and Urbach’s energy of the specimens. Glancing incidence X-ray diffraction study displayed that silver nanoparticles are in face-centered cubic geometry. Their shape, size and distribution in the glass matrix were further probed using transmission electron microscopy and field emission scanning electron microscopy. Rutherford back scattering spectrometry measurement revealed that a 180 nm thick layer of silver nanoparticles is formed in the near surface layers of glass. X-ray photoelectron spectroscopy and photoluminescence spectroscopy suggested that after ion-exchange silver is primarily in the ionic form and after Ar+ implantation at an angle of 40° it acquires metallic form which further nucleate and grow to form silver nanoparticles in glass.