Abstract Understanding how plasmonic nanostructures generate heat upon exposure to light, and thus increase the local temperature of the surrounding medium is important for many applications. Reliable temperature manipulation requires analyzing the local temperature distribution as a function of laser density. In this work, an optical heating system containing silver nano-islands (Ag NIs) is designed to enable heat generation at the micro/nanometer scale and the local temperature can reach 1458 K. The heat generation by Ag NIs exposed to near-IR laser light, and the temperature distribution, are detected in situ via the fluorescence intensity ratio technique. It was found that the temperature of the system can be controlled by changing the excitation power. Furthermore, the temperature-dependent UCL of a single Y2O3:Yb3+/Er3+ microrod is studied by taking advantage of the controllable local temperature in the optical heating system. It was found that the color of the upconversion luminescence can be tuned by managing the local temperature, and conversely, the local temperature at the optical heater can be monitored by observing the color change of the rare-earth microrod. The real-time manipulation of plasmonic heating offers an opportunity to control outcomes of thermo-plasmonic effects, which then enables a myriad of practical applications.