Silver nanoparticles, which were produced by the borohydride reduction of silver nitrate, were stabilized by means of 1-dodecanethiol providing sulfur atom in two-phase system involving water and organic solvent (such as toluene, chloroform and hexane). Different organic solvent played a major role in the particle size of silver nanoparticles. These silver nanoparticles synthesized in the three different organic solvent were characterized by X-ray Diffraction, transmission electron microscopy and ultraviolet–visible absorption spectroscopy. The results indicate that the particles size of silver nanoparticles formed in three organic solvents was different. Furthermore, 1-dodecanethiol-capped silver nanoparticles were found to serve as effective catalysts to activate the reduction of 4-nitrophenol (4NP) in the presence of NaBH4, where the size of silver nanoparticles played the determining role in catalytic activity.