This work describes the preparation of new carboxymethyl guar gum-silver nanocomposite (CMGG/Ag NC) by green synthesis method. For this carboxymethyl guar gum was used as a reducing agent as well as stabilizer. The silver nanoparticles obtained were characterized by field emission scanning electron microscopy (FE-SEM), transmission electron microscopy (TEM), UV-vis spectroscopy, Fourier transform infrared (FTIR) and energy dispersive x-ray analysis (EDX). The average size of the silver nanoparticles was found of ~6 nm. Thus, the obtained CMGGIAgNPs NC was examined for optical sensing property for detection of ammonia in aqueous medium. The response time and the detection limit of ammonia in aqueous solution were detected at room temperature. It was concluded that in the future, at this room temperature optical ammonia sensor may be used for medical diagnosis and clinically for detecting low ammonia level (up to 1 ppm) in biological samples for various biomedical applications.