Bacopa monnieri has been chosen as model medicinal plant to study the induced effect of Silver nanoparticles on in-vitro callus production. Distinct morphological changes on callogenesis were observed on stress application. The effect of Silver nanoparticles on callus induction and autoclaving were studied within MS media and without MS media. The MS medium with the lower concentration (16X103) of Silver nanoparticles capable for medium growth of callus as that control and simultaneously reducing the rate of contamination. Biosynthesis of Silver nanoparticles were carried out by using Fusarium oxysporium fungus and characterized by UV-Vis spectrophotometer and LM 20.