The biocidal effect of silver is particularly well known and the term, oligodynamic activity was coined for this phenomenon. Silver is highly toxic to bacteria, and that toxicity seems to be accentuated when silver is delivered by a nanoparticle. In context of this the effect of Ag2+ ion was investigated on S. platensis. pH (=9.0±0.2) and temperature (320C) was optimized. Under these conditions, Ag2+ ion stress helped in growth at concentration of 1.0mg/ml followed by 0.5mg/ml as compared to control samples. The biomass production, protein synthesis, carbohydrate and chlorophyll contents were also determined. The specific phytochemical tests were confirmed presence of glycosides, terpenoids, phenolics, carbohydrates, amino acid, steroids, flavanoids, alkaloid and phenolics. Despite of biocidal activity of silver at higher concentrations this study suggests that Ag2+ at concentration of 1.0mg/ml may be added in the culture medium of S. platensis for optimum growth and production of value added products.