Silver nanoparticles (AgNP) possess broad biocidal activities, making them ideal for antibacterial, antiviral and anti-inflammatory formulations. A green synthesis method using palm oil mill effluent (POME) extract as both a stabilising and reducing agent was developed, eliminating the need for hazardous chemicals, with a 1.5 mM AgNO₃ solution used as the precursor for the synthesis. Preliminary profiling of POME extract was performed, including quantification of total phenolic, flavonoid and tannin contents. The synthesis was optimised using one factor at a time (OFAT) approach and characterised with vis-spectroscopy, fourier transform infrared (FTIR) and dynamic light scattering (DLS). Liquid Chromatography-Mass Spectrometry (LC-MS) was used to identify organic compounds containing hydroxyl, carbonyl and amine groups as possible reducing agents. Under optimised conditions of 6 mL extract and 1.5 mM AgNO₃ incubated at room temperature for 14 hr, AgNP exhibited a surface plasmon resonance (SPR) peak at 440 nm. FTIR spectra revealed significant hydroxyl and carboxyl groups essential for reducing Ag⁺ to Ag⁰. The synthesised POME-AgNP were crystalline, spherical in shape and 21 nm average size, with a low polydispersity index (PdI = 0.295) indicating monodispersity. A zeta potential of -19.3 mV demonstrated good stability against agglomeration and oxidation. Overall, the green AgNP synthesis method using POME extract proved successful, offering a sustainable alternative to conventional chemical and physical methods.