Nanoparticles, especially purely made inorganic nanoparticles such as gold (Au), silver (Ag) and copper (Cu), have distinctive optical and photochemical properties which makes them ideal for reducing phenolic compounds in water . Silver nanoparticles (AgNPs) due to its properties such as high surface area and reactivity , surface plasmon resonance (SPR) , surface-enhanced Raman scattering (SERS) are used to remove phenol from water system by adsorption , catalytic degradation and photocatalytic degradation mechanism. The silver nanoparticles works as photocatalyst in degradation (oxidation) of phenolic derivation , when AgNPs is combined with metallic oxides such as TiO2 and ZnO enhances the photocatalytic degradation of phenol. The removal efficiency of phenol depends on size and morphology of AgNPs. Environmental factors such as pH , temperature organic and inorganic contaminants which blocks the active sites on the surface of AgNPs, reducing the removal efficiency of phenol. AgNPs released in the environment to remove phenol has toxic effects to mammals , nonmammals and plants . In this review the importance of green synthesis is highlighted as the green synthesis uses non-toxic and biodegradable reagents that can work as both reducing and capping agents which enhances the cost-effectiveness and reduce the toxicity of silver nanoparticles in the environment. More emphasis should be made to do relevant research on microbial mediated synthesis especially viral mediated synthesis of AgNPs . The scope of this review is to discuss the effects and sources of phenol contamination. This review also discusses the use of silver nanoparticles to remove phenol and its derivatives from waste water, also highlighting the toxic effects of silver nanoparticles and the importance of using green synthesis which consist of plant and microbial mediated synthesis of silver nanoparticles.