In virtue of the local surface plasmon resonance (LSPR) properties of metal nanoparticles to enhance the nonlinear optical response of the material, we successfully embed small-size Au nanoparticles into CuO nanorods. Then, theoretical and experimental methods verify that the assistance of ultrafast plasma response enhances the light-matter interaction. The LSPR characteristics and evanescent field distribution of the Au-CuO saturable absorber on the tapered fiber are studied by the finite element simulation method (FEM). By utilizing the Z-scan technology and twin-balanced detector system, excellent nonlinear optical (NLO) properties of the Au-CuO nanorods are demonstrated. Subsequently, depending on the remarkable nonlinear saturable absorption effect of Au-CuO, multiple operating states such as Q-switched, conventional soliton, double-subpulse soliton cluster, and noise-like pulse mode-locking are achieved in the erbium-doped fiber ring cavity at 1.5 μm. In addition, dual-wavelength mode-locking pulses with the center wavelengths of 1031 nm and 1035 nm are realized in the ytterbium-doped fiber ring cavity. This work describes an effective strategy to improve the NLO properties of CuO nanorods and indicates the great potential of Au-CuO in pulsed fiber lasers, opening a path for its application in ultrafast photonics and optoelectronics.