A model for linear and nonlinear optical properties of a composite material consisting of spheroidal metal inclusions embedded in a host medium has been formulated using an effective medium approach. Both aligned and randomly oriented spheroids have been considered, and the results obtained showed a considerable difference between the two situations. Numerical calculations for metallic Au inclusions in a glass matrix have shown that the linear absorption in the case of aligned spheroids with their symmetry axis parallel to the z-axis is largely dependent on the depolarization factor, exhibiting an absorption in the vicinity of 500 nm when the depolarization factor in the direction parallel to the rotational symmetry axis is small. This structure shifts progressively to higher wavelengths when this depolarization factor is increased. In the case of randomly oriented spheroids, contributions from the different particle depolarization factors are present and prominent structures in the linear absorption appear in the long wavelength region, beyond 700 nm. Nonlinear optical properties for both aligned and randomly oriented spheroids also show a strong dependence on the depolarization factor and significant enhancements of these properties can be observed, suggesting possible tailoring of composite properties for various applications.