Au nanoparticles (particle diameter similar to2 nm) prepared by thiocyanate reduction method are too small to exhibit the characteristic surface plasmon band. Addition of Rhodamine 6G (Rh 6G) to the colloidal gold solution brings about significant changes in the absorption spectrum. Two distinct peaks appear at 507 and 537 nm. Close packing of the cationic dye molecules on the Sold surface induces intermolecular and intercluster interactions. Furthermore, the adsorption of the cationic dye on the gold surface results in surface charge neutralization causing the Au/dye assembly to aggregate. When the Au/Rh-6G solution was subjected to 532 nm laser pulse irradiation for long time intervals, we observed distinct changes in the absorption spectrum due to morphological changes. A growth in the particle size (5-20 nm) is observed as a result of melting and fusion of Sold nanoparticles. The photoinduced morphological changes have been elucidated using picosecond laser flash photolysis. The multiphoton process leading to fusion of particles occurs with a rate constant of 7 x 10(8) s(-1). The indirect role of Rh-6G in assisting the fusion of gold nanoparticles is discussed.