Textile industries not only consume huge volumes of water but also generate an equally alarming quantity of toxic dye rich waste water. This waste water if treated efficiently may be further reused for domestic and industrial purposes. Hence it is essential to develop, a cost effective and environmentally benign technique for adsorption of toxic dyes from textile effluents. Firstly, Ocimum tenuiflorum (Black Tulsi) leaf extract mediated green synthesis of silver nanoparticles (AgNPs) was carried out. The AgNPs were characterized using SEM and TEM analysis. These AgNPs were further utilized for preparing silver - nanocomposites with soil and applied as a novel nanocomposite for adsorption of reactive dye. However, this nanocomposite was determined to possess higher efficiency in comparison to soil as adsorbent for the removal of reactive turquoise blue dye under same experimental conditions. Moreover using these Ag-nanocomposites as adsorbent helped in achieving about 96.8% removal of reactive turquoise blue dye from effluent solution.