Gold nanostar (AuNS) particles, characterized by pointed tips emerging from a central core, exhibit localized surface plasmon resonance (LSPR) with strongly amplified electric field upon illumination. Compared to Au nanospheres and nanorods, the absorbance is enhanced with the absorption band extending from 500 to above 1000 nm. However, they are easily reshaped by Ostwald ripening and therefore difficult to use in any application. This study shows that the AuNS particles can be effectively stabilized by encapsulation with TiO2 using a low temperature method. The synthesis parameters and capping solution were optimized to form nanostars. The encapsulated Au nanoparticles promoted the aerobic oxidation of benzyl alcohol to benzaldehyde at ambient temperature under visible light irradiation. AuNS@TiO2 showed significantly higher photocatalytic activity than Au nanospheres, Au nanorods or bulk TiO2 due to its enhanced LSPR. Encapsulation of the colloidal nanoparticles with TiO2 confers robustness to the resulting heterogeneous catalyst with retention of the metal particle size, morphology and associated LSPR properties.