Thiolate-protected metal nanoclusters (or thiolated metal NCs) have recently emerged as a promising class of functional materials because of their well-defined molecular structures and intriguing molecular-like properties. Recent developments in the NC field have aimed at exploring metal NCs as novel luminescent materials in the biomedical field because of their inherent biocompatibility and good photoluminescence (PL) properties. From the fundamental perspective, recent advances in the field have also aimed at addressing the fundamental aspects of PL properties of metal NCs, shedding some light on developing efficient strategies to prepare highly luminescent metal NCs. In this Perspective, we discuss the physical chemistry of a recently discovered aggregation-induced emission (AIE) phenomenon and show the significance of AIE in understanding the PL properties of thiolated metal NCs. We then explore the unique physicochemical properties of thiolated metal NCs with AIE characteristics and highlight some recent developments in synthesizing the AIE-type luminescent metal NCs. We finally discuss perspectives and directions for future development of the AIE-type luminescent metal NCs.