This study reports that ionic liquid mediated Elaeis. guineensis (oil palm) leaves extract can be used for reduction of gold precursor to obtain stable gold nanoparticles (AuNPs). E. guineensis leaf extract was prepared by using a mixture of distilled water and 2 aq. ionic liquid (1-Ethyl-3-methylimidazolium chloride) as solvents. UV-vis spectra of reaction medium showed surface plasmon resonance (SPR) peak (λmax) at 539-557 nm confirm formation of gold nanoparticles. λmax was blue shifted toward 539 nm with increase in volume extract up to 0.60 ml while further addition of extract in the reaction medium resulted in red shifting of SPR band. Emim chloride functioned as a capping agent and results in synthesis of small size gold nanoparticles. TEM image analysis confirmed that average particles size of gold nanoparticles was 20.09±12.36 nm synthesized with an aqueous solution containing 2 Emim chloride as compared to average particle size of 39.60±13.63 nm when only distilled water was used as solvent for extraction of oil palm leaves. FTIR spectra analysis of the extracts identified presence of phenolic, carboxylic and amide groups that play important roles in reduction of gold precursor. © 2016 The Authors.