Metal nanoparticles are of strong interest for their unusual optical and Raman properties with potential for new and improved device applications. Specifically, the significantly enhanced Raman Scattering enabled by Surface Plasmon Resonance on metal nanoparticles open up the potential for the implementation of very sensitive sensors. It has been demonstrated that Surface Plasmon resonance can be used for the detection of a single molecule. Out of the various metal nanoparticles that have been investigated, the most promising are that made of gold and silver. Metal nananoparticles of gold and silver show strong Raman enhancement in the visible spectral region, making them suitable for optical sensors. This thesis carries out a comprehensive investigation of the Synthesis, Characterization and Simulation of gold and silver nanoparticles with the objective to develop an understanding of different process parameters that will impact future device design. In this work, gold and silver nanoparticles are fabricated by chemical synthesis techniques. These particles are characterized by their optical transmission. Theoretical simulations of the nanoparticles are carried out to determine their optical properties that are next compared with the experimental data. The impact of the Electric field around the nanoparticle for the enhancement of the Raman signal of a particular molecule has also been discussed.