Advanced optical imaging techniques are emerging as useful ways to screen tissues for the presence of cancer. Plasmon resonant nanoparticles have unique optical properties that make them ideal for use as optical contrast agents. The capacity of these particles to serve a multifunctional role dependent on their composition and the intensity of incident light enables them to serve as diagnostic tools and to provide the therapeutic capability of photo-thermal energy conversion or the controlled release of an encapsulated agent. Likewise, the ability to degrade into components of a clearable size may enable the clinical translation of these types of particles.These properties were demonstrated by means of experiments in the support of three specific aims. The first specific aim was to determine whether the unique and tunable optical properties of nanorods lend them to generate signal in advanced optical imaging techniques, and that nanorods can facilitate photo-thermal conversion. The second specific aim was to show that liposomes can serve as a scaffold for the support of an array of gold nanodots to generate a structure that exhibit tunable plasmon resonant characteristics and a resultant ability to generate signal in optical imaging techniques while having the capability to degrade into inert particles of a size that can be readily cleared from the body via the kidney. The final specific aim was to determine whether the gold-coated liposomes of the second specific aim can serve as system for light-based delivery of an encapsulated agent in addition to its role as an optical contrast agent and its biodegradation capacity.Plasmon resonant nanorods and plasmon resonant gold-coated liposomes were generated by reducing free gold from solution onto surfactant coated seed particles and phospholipid liposomes, respectively. Both structures demonstrated the ability to generate signal in optical coherence tomography and in multi-photon confocal microscopy images. Nanorods in high intensity light demonstrate a capacity to mediate photo-thermal energy conversion. While, in similar conditions, gold-coated liposomes are shown to release their contents. Gold-coated liposomes are also shown to degrade to bioinert components of a size reasonable for rapid renal clearance using either surfactant or enzyme.