We demonstrate for the first time the intrinsic role of nanoconfinement in facilitating the chemical reduction of metal ion precursors with a suitable reductant for the synthesis of metal nanoparticles, when the identical reaction does not occur in bulk solution. Taking the case of citrate reduction of silver ions under the unusual condition of [citrate]/[Ag⁺] ≫ 1, it has been observed that the silver citrate complex, stable in bulk solution, decomposes readily in confined nanodomains of charged and neutral matrices (ionexchange film and porous polystyrene beads), leading to the formation of silver nanoparticles. The evolution of growth of silver nanoparticles in the ion-exchange films has been studied using a combination of ¹¹⁰mAg radiotracer, small-angle X-ray scattering (SAXS) experiments, and transmission electron microscopy (TEM). It has been observed that the nanoconfined redox decomposition of silver citrate complex is responsible for the formation of Ag seeds, which thereafter catalyze oxidation of citrate and act as electron sink for subsequent reduction of silver ions. Because of these parallel processes, the particle sizes are in the bimodal distribution at some stages of the reaction. A continuous seeding with parallel growth mechanism has been revealed. Based on the SAXS data and radiotracer kinetics, the growth mechanism has been elucidated as a combination of continuous autoreduction of silver ions on the nanoparticle surfaces and a sudden coalescence of nanoparticles at a critical number density. However, for a fixed period of reduction, the size, size distribution, and number density of thus-formed Ag nanoparticles have been found to be dependent on physical architecture and chemical composition of the matrix.