A simple way to select a suitable host material, when doped with any rare-earth (RE) ion and incorporated with silver nanoparticles (NPs), to cause overlap between an excitation band of the RE ions and the localized surface plasmon resonance (LSPR) of the metallic NPs to study possible plasmonic enhancement is presented using Mie theory calculations. Unlike in previous studies, plasmonic enhancement was studied in a crystalline host instead of amorphous hosts. Bismuth silicate was synthesized using the sol-gel method and successfully doped with only terbium or silver, or co-doped with terbium and silver. The formation of silver NPs was investigated using diffuse reflectance spectroscopy, transmission electron microscopy, and Auger electron spectroscopy (AES). Luminescence properties of the terbium-doped bismuth silicate containing silver NPs were explored in detail and an enhancement of the emission from terbium ions at 545 nm when excited at 485 nm of about 2.5 times is attributed to amplification of the electric field associated with the LSPR of the silver NPs.