Plasmonic nanocomposites have been extensively studied for over 3 decades. According to early theoretical studies, a large enhancement of nonlinear response has been predicted. Nonetheless, the promised enhancement of coherent or Kerr-type nonlinearities incurs major limitations related to strong absorption and saturation effects. Accordingly, diffraction-limited interactions and long-scale propagation in ultrafast timescales are undermined despite nanoscale-localized electronic field enhancement. Seemingly only nanometric devices operating at low intensity regimes are benefitted from the foresaid effect. Nonetheless, numerous studies have still exploited configurable properties of the nonlinear response of plasmonic nanocomposites, such as nonlinear absorption, high-order nonlinearities, and diffusive nonlinearities for the development of novel processes within the framework of nonlinear wave propagation described by effective medium properties. In this review, the most recent developments on the understanding of the nonlinear response of metals and plasmonic nanocomposites in various temporal regimes are presented. Furthermore, a synthesis of their experimentally determined third-order properties obtained by various experimental techniques, along with practical considerations, is provided. Computational models used for the formulation of nonlinear wave propagation in plasmonic nanocomposites are subsequently presented, corresponding to applicable concepts. Most recent related applications are concisely summarized, indicating the directions of increasing interest in the field, and outlining shortcomings.