We studied the green synthesis and antibacterial activity of paper coated with chitosan-silver (Ag) green nanocomposites for packaging applications. Green synthesis of Ag nanoparticles (AgNPs) was achieved by a chemical reaction involving a mixture of chitosan-silver nitrate ($AgNO_3$) in an autoclave at 15 psi, $121^{circ}C$, for 30 min. AgNPs and their formation in chitosan was confirmed by UV-Vis spectroscopy, transmission electron microscopy (TEM) and dynamic light scattering (DLS). As-prepared chitosan-AgNPs composite materials were coated on manila paper using Meyer rod. Surface morphology and Ag contents in coating layer were characterized by field emission scanning electron microscopy (FESEM) and energy dispersive spectroscopy (EDS). The mechanical properties such as tensile strength and elongation were significantly affected by coating with chitosan-AgNPs. The antibacterial test of coated paper was performed qualitatively and quantitatively against Escherichia coli (E. coli). It was shown to be effective in suppressing the growth of E. coli with increasing Ag contents on the surface of coated paper and more than 95 R (%) of antimicrobial rate was obtained at chitosan-AgNPs coated papers.