Silver nanoparticles (AgNP) are likely to enter the aquatic environment because of their multiple uses. We have examined the short-term toxicity of AgNP and ionic silver (Ag⁺) to photosynthesis in Chlamydomonas reinhardtii using fluorometry. AgNP ranged in size from 10 to 200 nm with most particles around 25 nm. As determined by DGT (diffusive gradients in thin films), by ion-selective electrode, and by centrifugal ultrafiltration, about 1% of the AgNP was present as Ag⁺ ions. Based on total Ag concentration, toxicity was 18 times higher for AgNO₃ than for AgNP (in terms of EC₅₀). However, when compared as a function of the Ag⁺ concentration, toxicity of AgNP appeared to be much higher than that of AgNO₃. The ionic Ag⁺ measured in the AgNP suspensions could not fully explain the observed toxicity. Cysteine, a strong Ag⁺ ligand, abolished the inhibitory effects on photosynthesis of both AgNP and Ag⁺. Together, the results indicate that the interaction of these particles with algae influences the toxicity of AgNP, which is mediated by Ag⁺. Particles contributed to the toxicity as a source of Ag⁺ which is formed in presence of algae.