Implantation of metal ions (e.g., silver, copper, gold, lead) in glass substrates leads under certain circumstances to the formation of nanometer-radius colloidal particles in a thin surface layer. These particles exhibit an electron plasmon resonance which depends on the optical constants of the implanted metal and on the refractive index of the glass host. The nonlinear optical properties of such colloids, in particular the enhancement of optical Kerr susceptibility by both dielectric and quantum-confinement effects, suggest that the ion implantation technique may play an important role for the production of all-optical switching devices. A review of the state-of-the-art of the research in this field will be presented from the perspective of the nonlinear optical properties of ion-implanted glasses.