We report here fabrication of silver (0 to 1.76 mol%) doped PbS nanowires (radius r approximately 1.75 nm) in polymer by a simple wet chemical process. An X-ray photoelectron spectroscopy study clearly confirms the possibility of silver (Ag) doping in PbS nanowires. Both absorption and photoluminescence spectra reveal very strong quantum confinement effect in PbS nanowires as expected for a r/Bohr radius ratio approximately 0.0972 nm. Visible excitonic emission is observed at room temperature in the photoluminescence spectra of undoped and silver doped PbS nanowires in polymer. The excitonic emission is appreciably blue-shifted when doped by silver (1.76 mol%) indicating strong modification of the electronic states by magnetic silver ions. While Ag2+ centers at the substitutional lattice site show an emission band around 525 nm, Ag0 at the interstitial site act as nonradiative recombination centers. Effect of silver doping on the luminescence intensity is also discussed.