Nanoparticles are in the size ranges from 10-100 nm. The appearance and usefulness of nanoparticles brings many advantages and opportunities to paint and coating industry. Addition of nanoparticles to coatings can improve many properties of coating system. These nanoparticles can be synthesized by physical, chemical and biological methods. Biological synthesis of nanoparticles provides advancement over chemical and physical methods as it is a cost effective environment friendly and no need to use high pressure, energy, temperature and toxic chemicals. Recent studies on the use of biological material in the synthesis of nanoparticles are a relatively new and exciting area of research with considerable potential for development. This paper attempts to explain ongoing research worldwide using microorganisms and plants in the biosynthesis of nanoparticles and their applications in coatings