The bactericidal action of silver nanoparticles has been observed by many researchers since few years. In this study, we have developed an antibacterial ceramics (ACs) by absorbing synthesized silver nanoparticles within the ceramic matrix developed by us from an abundantly available coal fly ash, an extremely hazardous by-product of thermal power plants. Nanoparticles dispersions of different particle sizes were made absorbed in to the ceramic matrix to evaluate its bactericidal activity against both Staphylococcus aureus (Gram-positive) and Escherichia coli (Gram-negative) bacteria, taken as the model microorganisms. This study showed that the total bactericidal action of ACs depends on the size of absorbed nanoparticles and the content of nanoparticles in the dispersions within the ceramic matrix. ACs thus developed release very slowly a minute amount of nanoparticles and show strong and prolonged bactericidal activity against pathogenic strain of both types of bacteria. The concentration of prepared nanoparticles in dispersion and the concentration of released nanoparticles in aqueous medium from the absorbed ceramic matrix were measured using inductively coupled plasma spectrophotometer. The mechanism of the antibacterial action was also studied using transmission electron microscopy image analysis of the bacterial cross-section of both types of bacteria.