Nowadays, nanomaterials' nonlinear optical (NLO) properties are a fascinating topic for developing a novel all-optical switching application. Spatial self-phase modulation (SSPM) is an important technique to determine the laser-induced coherent light-matter interaction to determine the NLO properties of nanomaterials. This study successfully synthesized RbPbI3 nanorods (NRs) via a low-cost, less complicated chemical route with all the basic characterizations to confirm its structural and compositional analysis. For the first time, we conducted a comprehensive analysis of the nonlinear refractive index (n2) and third-order susceptibility (χ(3)) for RbPbI3 NRs dissolved in two different solvents, namely N-Methyl-2-pyrrolidone (NMP) and 2-propanol, utilizing the SSPM technique. Our investigation revealed significant nonlinear optical (NLO) responses with n2 = 6.19 × 10−5 cm2 W−1 and χmonolaer(3) = 2.38 × 10−8 esu for RbPbI3. We elucidated the factors contributing to this pronounced NLO behaviour, including variations in parameters such as solvent type, viscosity, wavelength, and cuvette length. Additionally, we successfully demonstrated optical information transfer through an all-optical switching application. This research sheds light on the NLO properties of Perovskite materials and holds promise for the development of advanced all-optical device applications.