The synthesis of powdered Ag nanoparticles in presence of poly (ethylene glycol), PEG as reducing agent and stabilizer was studied in aqueous medium. Techniques of X-ray diffraction (XRD), transmission electron microscope (TEM) and energy dispersive X-ray (EDAX) were used to characterize the structure and properties of the Ag nanoparticles. PEG plays an important role in formation of the Ag nanoparticles. XRD study shows that the particles are crystalline in nature with face centered cubic geometry. Formation of stable silver nanoparticles gives mostly spherical particles with diameter ranging from 12 to 30 nm. Furthermore, we investigated the catalytic activity of nano crystalline AgNPs, for the reduction of hydrogen peroxide (H2O2) at the surface of glassy carbon electrode modified with Ag nanoparticles and poly (methyl metacrylat) (AgNPs-PMMA/GCE) prepared by casting of the AgNPs-PMMA solution on GCE. The sensor responded to H2O2 with high selectivity, good reproducibility and stability, linear range from 22 µM to 1700 µM and a detection limit of 4.8 µM using amperometry.