In this study, the synthesis and characterization of exopolysaccharide-stabilized sliver nanoparticles (AgNPs) was carried out for the degradation of industrial textile dyes. Characterization of AgNPs was done using surface plasmon spectra using UV-Vis spectroscopy, X-ray diffraction (XRD) and Raman spectroscopy. The morphological nature of AgNPs was determined through transmission electron microscopy (TEM), scanning electron microscopy (SEM) and atomic force microscopy (AFM), which indicated that the AgNPs were spherical in shape, with an average size of 35 nm. The thermal behaviour of AgNPs revealed that it is stable up to 437.1 °C and the required energy is 808.2J/g in TGA-DTA analysis. Ability of EPS stabilized AgNPs for degradation of azo dyes such as Methyl orange (MO) and Congo red (CR) showed that EPS stabilized AgNPs were found to be efficient in facilitating the degradation process of industrial textile dyes. The electron transfer takes place from reducing agent to dye molecule via nanoparticles, resulting in the destruction of the dye chromophore structure. This makes EPS-AgNPs a suitable, cheap and environment friendly candidate for biodegradation of harmful textile dyes.