Optical properties of InGaN/GaN multi-quantum-well (MQW) structures with a nanolayer of Ag/SiO2 nanoparticle (NP) on top were studied. Modeling and optical absorption (OA) measurements prove that the NPs form localized surface plasmons (LSP) structure with a broad OA band peaked near 440-460 nm and the fringe electric field extending down to about 10 nm into the GaN layer. The presence of this NP LSP electrical field increases the photoluminescence (PL) intensity of the MQW structure by about 70% and markedly decreases the time-resolved PL (TRPL) relaxation time due to the strong coupling of MQW emission to the LSP mode.