Metal-tolerant microorganisms have been exploited in recent years to synthesize nanoparticles due to their potential to offer better size control through peptide binding and compartmentalization. In this paper, we report the intracellular synthesis of silver nanoparticles (SNPs) by the highly silver-tolerant marine bacterium, Idiomarina sp. PR58-8 on exposure to 5mM silver nitrate. SNPs were characterized by UV-visible spectrophotometry, X-ray diffraction (XRD), scanning electron microscopy (SEM) and transmission electron microscopy (TEM). UV-visible absorption scan of a 48 h culture exposed to 5mM silver nitrate revealed a broad peak at 450nm indicative of the surface plasmon resonance of SNPs. XRD analysis confirmed the presence of elemental silver and the crystallite size was calculated to be 25nm using Scherrer formula. The average particle size as per TEM analysis was found to be 26 nm. Metal stress is known to induce the production of non-protein thiols (NP–SHs) which sequester metal ions. In this study, the production of NP–SHs was followed from 6–48 h, wherein it was observed that the NP–SH levels in the silver-exposed culture were consistently higher (261% on an average) than in the unexposed culture.