Abstract In this article, we study the effect of electron–phonon interaction on a spaser (surface plasmon amplification by stimulated emission of radiation) system consisting of a metal nanoparticle surrounded by a large number of quantum dots (QDs). Usually, the effect of electron–phonon interaction is neglected in the spaser-related literature. However, gain media, in this case QDs, attributed by the large Raman scattering cross-section, exhibit stronger electron–phonon interaction. In the present work, we investigate the effects of electron–phonon interaction on a three-level QD-based spaser. We consider two types of interaction potentials, linear and quadratic, and analyse their effects individually. First, we focus on the linear electron–phonon interaction that perturbs the electrons present in the excited state. This yields a periodic steady-state number of localized surface plasmons (LSPs). The accompanying analytic solution reveals that the population inversion of the gain medium depends on the linear potential strength (Frohlich constant) but does not affect the threshold of spaser considerably for the given numerical parameters. In addition to the LSP, phonons are generated during this process, the temporal dynamics of which are also presented here. Initially, the number of phonons exhibit decaying periodic oscillations, whose amplitude depends on the strength of the electron–phonon interaction. Under continuous pumping, at later times, the number of phonons reaches a steady-state value, which may find potential applications in the realization of continuous phonon nanolasers. Furthermore, the effect of the quadratic potential is investigated phenomenologically by increasing the excited-state decay rate. This results in numerous LSPs and an intense spaser spectrum.