The appealing properties of tunable direct wide bandgap, high-temperature robustness and chemical hardness, make AlxGa1-xN a promising candidate for fabricating robust solar-blind photodetectors (PDs). In this work, we have utilized the optical phenomenon of localized surface plasmon resonance (LSPR) in metal nanoparticles (NPs) to significantly enhance the performance of solar-blind Al0.4Ga0.6N metal-semiconductor-metal (MSM) PDs that exhibit high-temperature robustness. We demonstrate that the presence of palladium (Pd) NPs leads to a remarkable enhancement by nearly 600, 300, and 462%, respectively, in the photo-to-dark current ratio (PDCR), responsivity, and specific detectivity of the Al0.4Ga0.6N PD at the wavelength of 280 nm. Using the optical power density of only 32 μWcm−2 at −10 V, maximum values of ~3×103,2.7 AW−1, and 2.4×1013Jones are found for the PDCR, responsivity and specific detectivity, respectively. The experimental observations are supported by finite difference time domain (FDTD) simulations, which clearly indicate the presence of LSPR in Pd NPs decorated on the surface of Al0.4Ga0.6N. The mechanism behind the enhancement is investigated in detail, and is ascribed to the LSPR induced effects, namely, improved optical absorption, enhanced local electric field and LSPR sensitization effect. Moreover, the PD exhibits a stable operation up to 400 K, thereby exhibiting the high-temperature robustness desirable for commercial applications.