In the proposed work, enhancement of anticancer potential of 5-Fluorouracil (5-FU)by encapsulated in the silver nanoparticle.5-FU shows poor solubility and low absorption rate therefore its silver nanoparticles was formed to increase solubility, absorption as well as affectivity against tumor. Various analytical methods and assay such as Particle size, Zeta potential, Atomic Force Microscopy (AFM), DSC, X-ray Diffraction (XRD) and Fourier Transform Infrared Spectroscopy (FTIR), Drug Release, In-vitro cytotoxicity study were employed for monitoring the formation of nanoparticles. Presence of silver nanoparticles with an average size of 28.9 nm was revealed by Atomic Force Microscopy. The crystalline nature of synthesized nanoparticles was done by X-ray diffraction. This work shows that 5-FU encapsulated silver nanoparticles shows potential activity against cancer cell.