Nanoparticles are a successful material for fibers and textiles functionality. In this work, silver nanoparticles (AgNPs) were synthesized by the chemical reduction of Ag+ and then the AgNPs were investigated by UV–visible (UV–vis) spectrophotometer, transmission electron microscopy (TEM), scanning electron microscopy (SEM) and Fourier transform infrared spectroscopy (FTIR). The synthesized nanoparticles were used for the surface improvement of the fabric, and the fabric was then dyed with C.I. Acid Red 18 (AR 18) at different temperatures. The physical properties, tensile strength, wrinkle rate, color strength, and colorfastness to perspiration of wool fabric were studied in dyed wool and raw wool fabric. It was found that the nanoparticle-treated fiber was stronger than untreated yarn. The corresponding rate of adsorption was analyzed and calculated according to different kinetic models. Furthermore, diffusion coefficients, the activation energy, and thermodynamic parameters were calculated. Treatment with AgNPs produces a wool fabric with excellent color fastness and antibacterial properties enables enhanced health care and reduced environmental impacts.