We review the basic physics of surface-plasmon excitations occurring at metal/dielectric interfaces with special emphasis on the possibility of using such excitations for the localization of electromagnetic energy in one, two, and three dimensions, in a context of applications in sensing and waveguiding for functional photonic devices. Localized plasmon resonances occurring in metallic nanoparticles are discussed both for single particles and particle ensembles, focusing on the generation of confined light fields enabling enhancement of Raman-scattering and nonlinear processes. We then survey the basic properties of interface plasmons propagating along flat boundaries of thin metallic films, with applications for waveguiding along patterned films, stripes, and nanowires. Interactions between plasmonic structures and optically active media are also discussed.