Silver (Ag) nanoparticles comprise a highly selective approach for development of nanosensors for the detection of Hg2+ ions. When Ag nanoparticles mixes with Hg2+ ions, loses its UV–Vis absorption intensity. Here, green synthesis of Ag nanoparticles was done using plant extract of Matricaria recutita (Babunah) under ambient conditions. Biosynthesized Ag nanoparticles are well-dispersed having quasi-spherical shape and average particle size of 11nm. XRD, SAED and HRTEM analysis showed that nanoparticles are well crystalline in nature and having cubic phase of geometry. We report here highly selective colorimetric detection of mercury ions (Hg2+) using biosynthesized Ag nanoparticles. Keywords: Herbal extract, Nanosensor, Biosynthesis, Matricaria recutita, Silver nanoparticles