The development of new synthesis methods for monodispersed nanocrystals using cheap and nontoxic chemicals, environmentally benign solvents and renewable materials remains a challenge to the scientific community. The present work reports a new green method for the synthesis of gold nanoparticles. Four different ayurvedic arishtams are used for the reduction of Au 3+ to Au nanoparticles. This method is simple, efficient, economic and nontoxic. Gold nanoparticles having different sizes in the range from 15 to 23nm could be obtained. The nanoparticles have been characterized by UV–Visible spectroscopy, transmission electron microscopy (TEM), X-ray diffraction (XRD) and FTIR analysis. The high crystallinity of nanoparticles is evident from bright circular spots in the SAED pattern and peaks in the XRD pattern. The synthesized gold nanoparticles show good catalytic activity for the reduction of 4-nitrophenol to 4-aminophenol by excess NaBH 4 . The synthesized nanoparticles are found to exhibit size dependent catalytic property, the smaller nanoparticles showing faster activity.