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Nanoparticles (NPs) have received worldwide attention due to their utilization in various fields such as medicine, biosensors and pharmaceuticals. Biological resources such as bacteria, fungi, algae and plants have been proved to produce several types of NPs with numerous shapes and sizes. Biological resources are being investigated to reduce the effects of hazardous chemicals and reducing agents used in the synthesis of NPs, since the biological resources act as reducing and stabilizing agents. Conventional methods such as chemical and physical syntheses involves hazardous chemicals which later become a concern for health and the environment owing to their toxicity. The expansion in green route for effective metal-based NPs synthesis by using biological resources is a captivating research area in nanotechnology as they have positive economic and eco-friendly significances in comparison with the chemical and physical methods. The synthesis of NPs using plant extract is the most suitable method compared to using bacteria, fungi and algae, as it requires less energy, is safe and can be easily scaled up. These advantages are most desirable for wound healing, antibacterial, antifungal, anti-inflammatory and antidiabetic applications. Therefore, the current paper aims to review the synthesis of NPs using bacteria, fungi, algae and plants and their potential applications in different fields.