Nanoparticles (NPs) have a wide range of applications in various sectors. The NPs synthesis is classified into two basic approaches: top-down and bottom-up. These approaches can be further classified into chemical, physical and biological methods. Biological methods are simple, inexpensive, and eco-friendly. Several microorganisms, such as bacteria, cyanobacteria, actinomycetes, yeasts, fungi, and algae, have synthesized NPs. The marine environment is well known for its microbial diversity. Such microbes can survive in hostile environments such as extreme pH, lack of nutrients, and high concentrations of metals and salts. Marine microorganisms are well-known for their ability to produce various types of metallic NPs like CO3O4, Fe, Au, Ag, Cu, Co, and Ti. Biomolecules produced by marine microbes play a crucial role as capping and stabilizing agents for NPs. The NPs synthesized by marine microorganisms are studied for their antimicrobial, antifungal, and anticancer activities. These NPs are effective against several multidrug-resistant microorganisms and exhibit a synergistic effect when combined with antibiotics. Anticancer activity of these NPs is studied against varieties of cancer cell lines such as human cervical cancer cell line (HeLa), lung cancer cell line (A549), and histolytic lymphoma cancer cell line (V937). Bio-inspired metal NPs are synthesized from various microbial sources with diverse shapes, sizes, and optical and dielectric properties. These NPs are used in medical bio-imaging due to their optical properties, such as high transparency, plasmon resonance, high/low refractive index, and new photoluminescence properties. Since recent advances in nanotechnology, significant advances in metallic nanomaterial-based biosensors have been observed. Nanotechnology has helped minimize biosensors nanosized biosensors that can easily detect and interact with small molecules, from single-cell to double-stranded DNA. In this chapter, we have emphasized the mechanism of synthesis, mode of action and applications of NPs in various sectors.