Fairly uniform chitosan (CS)/poly(ethylene oxide) (PEO) ultrafine fibers containing silver nanoparticles (AgNPs) were successfully prepared by electrospinning of CS/PEO solutions containing Ag/CS colloids by means of in situ chemical reduction of Ag ions. The presence of AgNPs in the electrospun ultrafine fibers was confirmed by X-ray diffraction patterns. The AgNPs were evenly distributed in CS/PEO ultrafine fibers with the size less than 5 nm observed under a transmission electron microscope. X-ray photoelectron spectroscopy suggested that the existence of AgaEuro center dot O bond in the composite ultrafine fibers led to the tight combination between Ag and CS. Evaluation of antimicrobial activities of the electrospun Ag/CS/PEO fibrous membranes against Escherichia coli showed that the AgNPs in the ultrafine fibers significantly enhanced the inactivation of bacteria.