Abstract: The present invention provides a yarn with antimicrobial effects. The antimicrobial antifungal effect of the yarn is derived from nanosilver particles (diameter between 1 and 100 nm) which are adhered to the yarn. The yarn contains fibers which are made of cotton, linen, silk, wool, leather, blending fabric, synthetic fiber, or any combination thereof. The yarn can be used to make cloth to be used particularly for treating patients with burns or wound. The cloth made from the antimicrobial yarn can be further used to make clothes such as underwears, socks, shoe cushions, shoe linings, bed sheets, pillow cases, towels, women hygiene products, laboratory coats, and medical robes. The present invention also provides a method for making the antimicrobial yarn.