Biodegradable, spectrally tunable plasmon resonant nanocapsules are created via the deposition of gold onto the surface of 100 nm diameter thermosensitive liposomes. These nanocapsules exhibit selective release of encapsulated contents upon illumination with light of a wavelength matching their distinct resonance bands. In this study, 760 and 1210 nm laser illumination elicits complete release from gold-coated liposomes with a corresponding resonance, while causing minimal release from liposomes with an unmatching resonance. Spectrally selective release is accomplished through the use of multiple, low-intensity laser pulses delivered over a period of minutes, ensuring that illumination affects the gold-coated liposomes without heating the surrounding media. The use of pulsed illumination to achieve spectral selectivity is validated experimentally and through modeling of the heat equation. The result of this illumination scheme for selective release using multiple wavelengths of light is a biologically safe mechanism for realizing drug delivery, microfluidic, and sensor applications.