The increasing energy consumption in buildings due to cooling and heating, accounting for over one-third of the total energy consumption in society, has become a growing concern. Therefore, reducing building energy consumption has become an urgent issue for countries worldwide. Windows serve as the primary channel for energy exchange between the indoor and the outdoor environments. While providing natural lighting for occupants, windows are also the weakest link in terms of energy consumption. In recent years, there have been some new and superior coating glass technologies compared to traditional low-emissivity glass. These coatings utilize various optical functional materials to regulate the incident sunlight, aiming to save cooling and heating energy consumption. Materials, such as tungsten-based compounds, vanadium dioxide, lanthanum hexaboride, or copper monosulfide, can absorb near-infrared light to effectively control solar radiation by leveraging the localized surface plasmon resonance (LSPR) effect of nanoparticles. This paper mainly introduces the micro-mechanisms of these materials and provides a detailed summary of the latest advancements in coating materials. The application and effects of these coatings in building energy conservation are emphasized. Finally, the challenges and prospects of LSPR-based smart windows are discussed. It is expected that this review will provide new insights into the application of smart windows in green buildings.