A novel series of elliptical gold (Au0) nanoparticles (18–40 nm) embedded antimony glass (K2O-B2O3-Sb2O3) dichroic nanocomposites have been synthesized by a single-step melt-quench in-situ thermochemical reduction technique. X-ray and selected area electron diffractions manifest growth of Au0 nanoparticles along the (111) and (200) crystallographic planes. The transmission electron microscopic image reveals elliptical Au0 nanoparticles having an aspect ratio varying in the range 1.2–2.1. The dichroic behavior of the nanocomposites arises due to elliptical shape of the Au0 nanoparticles. These nanocomposites show strong surface plasmon resonance (SPR) band of Au nanoparticles in the range 610–681 nm and it exhibit red-shifts with increasing Au concentration. They, when co-doped with Sm2O3 and excited at 949 nm, exhibit about sevenfold enhancement of the upconverted red emission transition of 4G5/2→6H9/2 at 636 nm due to local electric field enhancement effect of Au0 nanoparticles induced by its SPR. These nanocomposites are the promising materials for laser, display, and various nanophotonic applications.