Ganoderma lucidum is a fungus belonging to family Ganodermataceae of polypore mushrooms which grows on woody root region of a tree. These mushrooms are extensively used as a traditional Asian medicine and are well known for their potential in bioremediation of metals. The present study was carried out with the objective of using the above mushroom for developing silver nanoparticles(Ag-NPs) and characterization of the same using ultraviolet-visible spectroscopy (UV-Vis), Fourier transform infrared (FT-IR) spectroscopy ,X-ray diffraction (XRD), energy dispersive X-ray (EDX), and scanning electron microscopy (SEM), followed by High resolution-Transmission Electron Microscopy(HR-TEM).Surface Plasmon resonance showed the formation of silver nanoparticles in UV-Visible spectra at 438 nm. The Fourier transform infrared spectroscopy (FTIR) analysis was carried out to identify and study the functional groups responsible for the bio-reduction of silver ions. The XRD study showed that the particles as crystalline in nature with a Face Centered Cubic (FCC) structure. The synthesized Ag-NPs were poly dispersed spherical particles as confirmed by EDAX-SEM and stabilized in the solution with the spherical shapes further confirmed by HRTEM analysis to be in the range of 12-20 nm. The present findings of Ag-NPs of Ganoderma lucidum promisingly proved have strong anti-cancer activity on MCF-7 cell line; in future these findings may contribute to the improvement of a suitable anticancer drug.