In our study, the formation of silver nano-particles inside the network of CMC hydrogel was carried out during the formation of hydrogel matrix. Our approach depends on the dual function of CMC as reducing and stabilizing agent for silver nano-particles during the formation of CMC hydrogel containing silver nanoparticles. The negatively charged carboxyl groups in CMC attract the positively charged silver cations. For the synthesis of silver nanoparticles, the generally accepted mechanism suggests a two-step process, i.e. atom formation and then polymerization of the atoms. In the first step, a portion of metal ions in a solution is reduced by the available reducing groups of the CMC. The atoms thus produced act as nucleation centers and catalyze the reduction of the remaining metal ions present in the bulk solution. Subsequently, the atoms coalesce leading to the formation of metal clusters. The surface ions are again reduced and the process is stabilized by the interaction with the polymer so preventing further coalescence