The synthesis of semiconductor nanoparticles is a growing research area due to the prospective applications for the development of novel technologies. In this paper we have reported the biosynthesis of Cadmium sulfide nanoparticles (CdSNPs) by reduction of cadmium sulphate solution, using the bacteria of Serratia nematodiphila. The process for the synthesis of CdS nanoparticles is fast, novel and ecofriently. Formation of the CdS nanoparticles was confirmed by surface Plasmon spectra using UV-Vis spectrophotometer and absorbance strong peak at 420 nm. The morphology of crystalline phase of nanoparticles was determined from Scanning Electron Microscopy (SEM), Energy Dispersive X-ray spectroscopy and X-ray diffraction (XRD) spectra. The average size of CdS nanoparticles was in the range of 12 nm and the observed morphology was spherical. The results indicated that the proteins, which contain amine groups, played a reducing and controlling responsibility during the formation of CdS nanoparticles in the colloidal solution. Antibacterial activity against some bacteria such as Bacillus subtilis, Klebsiella planticola. CdS nanoparticles exhibiting good bactericidal activity.