Silver nanoparticles were prepared in aqueous silver nitrate solution using hydrazine as reducing agents in presence of two ionic surfactants (cetyltrimethylammonium bromide; CTAB and sodium dodecyl sulfate; SDS) and one non-ionic surfactant (Triton X-100). The reaction rate was determined spectrophotometrically. The nature of the head group of these surfactants is responsible for the formation of stable, yellow and transparent silver sol. For a certain reaction time, i.e., 20 min, the absorbance of reaction mixture first increased until it reached a maximum, then decreased with [hydrazine]. The reaction follows first-order kinetics with respect to each in [hydrazine] and [Ag(+)]. The results suggest formation of a complex between silver(I) and hydrazine, decomposes in a rate-determining step, leading in the formation of a free radical, which again reacts with the silver(I) in a subsequent fast step to yield the products. The transmission electron microscopic (TEM) images show that CTAB stabilized silver nanoparticles are spherical and of uniform particle size, and the average particle size is about 15 nm.