In the present work, we describe a low-cost, unreported and simple procedure for biosynthesis of zinc oxide nanoparticles (ZnO NPs) using reproducible bacteria, Aeromonas hydrophila as eco-friendly reducing and capping agent. UV-vis spectroscopy, XRD, FTIR, AFM, NC-AFM and FESEM with EDX analyses were performed to ascertain the formation and characterization of ZnO NPs. The synthesized ZnO NPs were characterized by a peak at 374 nm in the UV-vis spectrum. XRD confirmed the crystalline nature of the nanoparticles and AFM showed the morphology of the nanoparticle to be spherical, oval with an average size of 57.72 nm. Synthesized ZnO NPs showed the XRD peaks at 31.75°, 34.37°, 47.60°, 56.52°, 66.02° and 75.16° were identified as (100), (002), (101), (102), (110), (112) and (202) reflections, respectively. Rietveld analysis to the X-ray data indicated that ZnO NPs have hexagonal unit cell at crystalline level. The size and topological structure of the ZnO NPs was measured by NC-AFM. The morphological characterization of synthesized nanoparticles was analyzed by FESEM and chemical composition by EDX. The antibacterial and antifungal activity was ended with corresponding well diffusion and minimum inhibitory concentration. The maximum zone of inhibition was observed in the ZnO NPs (25 μg/mL) against Pseudomonas aeruginosa (22±1.8 mm) and Aspergillus flavus (19±1.0 mm). Bacteria-mediated ZnO NPs were synthesized and proved to be a good novel antimicrobial material for the first time in this study.