The synthesis of metal nanoparticles using biological systems is an expanding research area due to the potential applications in nanomedicines. Nanoparticles synthesized by chemical method is not eco-friendly. The biological synthesis of silver nanoparticles is convenient and extracellular method, which is environmentally safe. In the present study the silver nanoparticles synthesized rapidly by using the stem barks of endemic medicinal plants Boswellia ovalifoliolata and Shorea tumbuggaia. After assessing the formation of silver nanoparticles with the help of UV-Visible spectroscopy and were characterized by using EDAX and SEM. Diversity has been observed in size and shape of the silver nanoparticles synthesized in two plants. Phytosynthesized silver nanoparticles were tested for the antifungal activity. The test cultures of Aspergillus, Fusarium, Curvularia, and Rhizopus species were used. The fungal property of silver nanoparticles was analyzed by measuring the inhibitory zone. The silver nanoparticles synthesized from bark extract of Boswellia ovalifoliolata and Shorea tumbuggaia. Boswellia ovalifoliolata showed moderately toxic to the Aspergillus, Curvularia and Rhizopus species and highly toxic to Fusarium species. Biologically synthesized silver nanoparticles of Shorea tumbuggaia bark extract were moderately toxic to Aspergillus, Fusarium and Rhizopus species and highly toxic to Curvularia species. The important outcome of the study will be the development of value added products from medicinal plants of India for biomedical and nanotechnology based industries.