Increased use of classical drug therapy, including the administration of antibiotics and anticancer drugs, has led to multidrug resistance. Overcoming this resistance requires alternative therapies. Photodynamic therapy is used extensively to combat numerous ailments by killing cells by producing reactive chemical species (RCS). Plasmonic nanomaterials are excellent candidates for bactericidal and neoplastic agents due to their specialized optical properties and capacity to generate RCS. Plasmonic nanomaterials are in great demand for drug delivery, medical diagnostic applications, electronic semiconductors, biomolecular sensing, surface-enhanced Raman spectroscopy, enhancement of materials, and catalysis. This review focuses on plasmonic nanoparticle therapy for bacterial infections and cancers. In particular, mechanisms for RCS formation, toxicity, immunogenicity, and biodegradability of plasmonic nanomaterials are discussed. These materials may become important agents for treating bacterial infections and cancer in the near future, in combination with proper targeting agents and conjugation with biocompatible molecules.