Polysaccharides are being extensively employed for the synthesis of silver nanoparticles (Ag NPs) having diverse morphology and applications. Herein, we present a novel and green synthesis of Ag NPs without using any physical reaction conditions. Linseed hydrogel (LSH) was used as a template to reduce Ag+ to Ag0. AgNO3 (10, 20, and 30 mmol) solutions were mixed with LSH suspension in deionized water and exposed to diffused sunlight. Reaction was monitored by noting the change in the color of reaction mixture up to 10 h. Ag NPs showed characteristic ultraviolet-visible (UV/Vis) absorptions from 410 to 437 nm in the case of sunlight and 397-410 nm in the case of temperature study. Transmission electron microscopy images revealed the formation of spherical Ag NPs in the range of 10-35 nm. Face-centered cubic array of Ag NPs was confirmed by characteristic diffraction peaks in powder X-ray diffraction spectrum. Ag NPs were stored in LSH thin films, and UV/Vis spectra recorded after 6 months indicated that Ag NPs retained their texture over the storage period. Significant antimicrobial activity was observed when microbial cultures (bacteria and fungi) were exposed to the synthesized Ag NPs. Wound-healing studies revealed that Ag NP-impregnated LSH thin films could have potential applications as an antimicrobial dressing in wound management procedures.