Great efforts have been devoted to the exploration of potential diagnostic and therapeutic applications of thiolate-protected gold nanoclusters (Au NCs). One of the therapeutic applications is the photosensitized generation of highly reactive singlet oxygen (1O2) using Au NCs for photodynamic therapy. However, there is scope for improving the 1O2-generation efficiency of Au NC photosensitizers. In this study, we exploit three strategies to improve the 1O2-generation efficiency of glutathione-protected Au NCs: (i) doping with silver (i.e., using bimetallic AuAg NCs, (ii) achieving aggregation-induced emission (AIE) using a Au­(I)–thiolate complex, and (iii) achieving self-assembly-induced emission (SAIE) using a polymer nanogel. The combination of these three effects dramatically increased the 1O2-generation efficiency and enhanced the luminescence of the glutathione-protected Au NCs, owing to the inhibition of the nonradiative decay pathways. Finally, the photosensitizers based on AuAg NC@nanogel composites were successfully used for antimicrobial photodynamic therapy (a-PDT) against oral bacteria. This study provides general insights into the molecular design of water-soluble Au NC photosensitizers for therapeutic applications.