A facile method to generate silver nanoparticles in biocompatible hydrogel matrices such as poly(2-hydroxyethyl methacrylate) (pHEMA) and poly(ethylene glycol) methyl ether methacrylate (PEGMEMA) is presented here. Polymerization was carried out in the presence of silver precursor and ketyl radical generator. The transparent gels were exposed to UV light at different times to monitor the formation kinetics of silver nanoparticles. The material was characterized by absorption, fluorescence and x-ray photoelectron spectroscopy, electron microscopy, x-ray diffraction and thermogravimetric analysis. The release of silver nanoparticles from hydrogel matrices to aqueous environment was also studied. The antibacterial property of these materials was also investigated.