The paper outlines the antibacterial, in-vitro biocompatibility assay, and mechanical properties of PLA/Ag nanofibers fabricated by electrospinning technique. The colloidal nanosilver involved in the system were synthesized using biological reduction method from silver nitrate (AgNO3) and bitter gourd extract (reducing agent) in diphase medium containing PLA matrix (capping agent). The nanofibers were characterized using Scanning electron microscopy (SEM), Transmission electron microscope (TEM), Energy dispersive X-ray spectroscopy (EDS),Dynamic light scattering technique (DLS), Fourier transform-infrared spectroscopy (AT-IR), X-ray diffraction (XRD), Contact angle (WCs), Fluorescence spectroscopy and UV-vis spectroscopy (UV-vis). The capping agent ( PLA) interaction with colloidal nanosilver was confirmed by the X-ray photoelectron spectroscopy (XPS). Appreciable antibacterial property was observed for PLA/Ag nanofibers on screening it against Escherichia coli and Staphylococcus aureus by agar disc diffusion method. The spherical particles with an average size of about 5-20 nm were deduced by Transmission electron microscopy (TEM) analysis. The in-vitro analysis showed that the biofabricated PLA/Ag nanofiber (with Hemolytic percentage less than 5%) were also cytocompatible with fibroblast cell and does not impair cell growth. An observed WVTR of 2237.53 +/- 165 g/ m(2).24 h seem to provide an optimal moist environment locally to promote wound healing. All these results justify PLA/Ag nanofibers as a wound healer that can enhance the proliferation and function of epidermal cells and fibroblasts.