Plant extracts contain secondary metabolites which have the potential to act as reducing and stabilizing agents contributing to a greener and more efficient method to synthesize nanoparticles. Rapid growth of Nanotechnology has led to an increased demand in various fields. This review summarizes the use of potent medicinal plant extracts to synthesize metal nanoparticles, methods employed to characterize the properties of the nanoparticles and its application. Characterization of the nanoparticle based on its shape, size, chemical bonds, surface properties, hydrodynamic diameter and crystalline structure using techniques such as UV-Visible Spectroscopy, XRD (X-ray Diffraction), TEM (Transmission Electron Microscopy), SEM (Scanning Electron Microscopy), EDS (X-ray energy dispersive spectroscopy), DLS (Dynamic Light Scattering), Zeta Potential and FTIR (Fourier Transform-Infrared Spectroscopy) are elaborated. The synthesized metal nanoparticles have wide ranges of applications such as antimicrobial activity, antioxidative capability, anticancer effect, antidiabetic properties, plant growth enhancement, dye degradation effects and anti-larval properties. Recent advances in nanotechnology with special emphasis on plant metabolites provide an insight into their usage as plant-derived edible nanoparticles (PDNPs). Applications, limitations and future prospects of this technology have also been briefly discussed.