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Within the last decades, the research on nanoparticles presenting localized surface plasmon resonance has increased constantly. In these materials, the interaction between electrons and incident light results in charge separation, enhancement of the electromagnetic field on the nanoparticles surface and in unique optical properties. Although many metals such as gold, silver, copper and aluminum present localized surface plasmon resonance within the visible range, gold and silver are the most commonly studied metals, due to the chemical inertia of gold and intense plasmon resonance from silver. In this review, we provide a description of the origin of localized surface plasmon resonance through the works developed by Mie, Maxwell and Maxwell-Garnett and a description of many examples of application of plasmonic nanoparticles on biosensors and solar cells, detailing the contribution of these plasmonic nanoparticles on the performance of these devices.