Interaction of carnosine with silver clusters and its nanoparticles is studied at pH 8.2 and 9.2. Using time resolved kinetic measurements we show that carnosine interacts with the charged silver clusters. Using ionizing radiation silver particles are also produced in aqueous solution. In the presence of carnosine distinct differences in the surface plasmon absorption band of Ag nanoparticles is observed with change in pH. The results suggest that silver nanochains get formed through dipole –dipole interaction due to weak interaction with carnosine. UV –Vis spectrophotometry and transmission electron microscopy are used to characterize the nanoparticles.