Ag deposited N-$TiO_2$ composite nanoparticles were prepared via $NH_3$ plasma treatment. X-ray diffraction, UV-vis spectroscopy, photoluminescence, and X-ray photoelectron spectroscopy were used to characterize the prepared $TiO_2$ samples. The plasma treatment did not change the phase composition and particle sizes of $TiO_2$ samples, but extended its absorption edges to the visible light region. The photocatalytic activities were tested in the degradation of an aqueous solution of a reactive dyestuff, methylene blue, under visible light. The photocatalytic activities of Ag deposited N-$TiO_2$ composite nanoparticles were much higher than Ag-$TiO_2$, N-$TiO_2$, and P25. A possible mechanism for the photocatalysis was proposed.