Silver nanoparticles (AgNPs) in chitosan (CS) stabilizer were successfully synthesized using electron beam irradiation. The effects of irradiation dose, molecular weight (MW) of CS stabilizer, concentration of AgNO3 precursor and addition of tert-butanol on AgNPs production were studied. The stability of the AgNPs under different temperatures and storage times were also investigated. The AgNPs formation in CS was observed using UV–vis, FT-IR and XRD. The characteristic surface plasmon resonance (SPR) of the obtained AgNPs was around 418nm. The CS stabilizer and its MW, AgNO3 precursor and irradiation doses are important parameters for the synthesis of AgNPs. The optimum addition of 20% v/v tert-butanol could assist the formation of AgNPs. The AgNPs in CS stabilizer were stable over a period of one year when the samples were kept at 5°C. The AgNPs observed from TEM images were spherical with an average particle size in the range of 5–20nm depending on the irradiation doses. The AgNPs in CS solution effectively inhibited the growth of several fungi, i.e., Curvularia lunata, Trichoderma sp., Penicillium sp. and Aspergillus niger, which commonly found on the building surface.