Silver nanoparticles (Ag NPs) and their nanocomposites with polymers are potent agents for antibacterial and disinfectant applications. The structural parameters of Ag-NPs, such as size, shape, and surface area, are very critical for developing appropriate formulations for the targeted applications. The impact of these factors on the performance of Ag NPs is analyzed. Ag NPs with a broad spectrum of antibacterial activities have already found applications in wound and burn dressing, food preservation, agricultural ponds, treatment for infected areas, coatings, water treatment, and other biomedical applications. Ag NPs are quite useful against antibiotic-resistant bacteria, but their level of toxicity needs careful investigation as their toxicity could be very harmful to human health and the environment. This review discusses the challenges and prospects of various Ag NPs and their composites. The review will enrich the knowledge about the efficiency and mechanism of various Ag nanoparticle-based antibacterial agents.