In this paper, we report the synthesis and characterization of Iota-Carrageenan based on a novel biodegradable silver nanocomposite hydrogels. The aim of study was to investigate whether these hydrogels have the potential to be used in bacterial inactivation applications. Biodegradable silver nanocomposite hydrogels were prepared by a green process using acrylamide (AM) with I-Carrageenan (IC). The silver nanoparticles were prepared as silver colloid by reducing AgNO3 with leaf extracts of Azadirachta indica (neem leaf) that (Ag0) formed the hydrogel network. The formation of biodegradable silver nanoparticles in the hydrogels was characterized using UV-vis spectroscopy, thermo gravimetrical analysis, X-ray diffractometry studies, scanning electron microscopy and transmission electron microscopy studies. In addition, swelling behavior and degradation properties were systematically investigated. Furthermore, the biodegradable silver nanoparticle composite hydrogels developed were tested for antibacterial activities. The antibacterial activity of the biodegradable silver nanocomposite hydrogels was studied by inhibition zone method against Bacillus and Escherichia coli, which suggested that the silver nanocomposite hydrogels developed were effective as potential candidates for antimicrobial applications. Therefore, the inorganic biodegradable hydrogels developed can be used effectively for biomedical application.