This study deals with the synthesis of cysteine capped gold nanoparticles with an average size of 12 nm by borohydride reduction and spectroscopic identification of SAu interaction. We have studied the interaction of thiol with gold nanoparticles in aqueous medium by employing UV-vis, Raman, NMR, and FT-IR spectroscopy. The shifting of gold plasmon resonance in the UV-vis spectra shows the stabilization of gold nanoparticles by cysteine. The disappearance of S-H stretching in both the IR and Raman spectra and the shifting of the NMR signals of the protons in close proximity to the metal center supported the existence of the S-Au interaction in cysteine capped gold nanoparticles. The TEM images shows cysteine capped gold nanoparticles as distinct and spherical entities as compared to free colloidal gold nanoparticles.