Laser-induced cavitation (LIC) bubbles and the shockwaves they form upon collapse are destructive to nearby solid boundaries, making them of interest for biomedical and industrial applications. Furthermore, the LIC bubbles provide spatial control that can be tuned by the bubble size, collapse time and shockwave intensity. The inclusion of plasmonic nanoparticles, such as gold nanoparticles (GNP) in the liquids where LIC bubbles are formed, can further enhance the absorption of light, allowing for bubble formation at lower laser energies. However, the effect of the physical properties of such liquids on LIC bubble dynamics remains unknown. In this study, the dynamics of LIC bubbles in water–ethanol, water-glycerol, and water-GNP solutions were investigated by simultaneous high-speed shadowgraphy and spatial transmittance modulation. The first set of experiments demonstrated that LIC bubbles induced in the GNP solutions led to more efficient cavitation formation with lower fluence compared to solutions without GNPs, thereby producing higher-intensity pressure waves. A second set of experiments was conducted to determine the surface tension of GNP solutions at room temperature and was found to be 70.62 mN/m. With this information, and the corresponding values reported in the literature for ethanol and glycerol, we aimed at discerning the role of surface tension and viscosity on the dynamics of LIC bubbles, apart from the enhanced optical absorption of the GNP solutions. We observed that the optical breakdown threshold for plasma formation was reduced by 18% in GNP solutions as compared to DI water and 10.4% compared to ethanol, and the intensity of initial shockwaves in the GNP solutions was much higher than those in DI water. This enhanced intensity of shockwaves in GNP solutions compared to DI water opens a new avenue for the enhancement of cancer cell treatment and anti-bacterial applications in the biomedical field and the enhancement of the laser ablation technique in the industrial setting.