Plasmonic nanobubbles are bubbles that are formed from local heat generated by noble metal nanoparticles under illumination of light at resonance. Understanding the formation and behavior of plasmonic nanobubbles is important for a broad suite of applications that rely on enhanced local heating of nanoparticles, such as in biomedical treatments and solar energy conversion. Here, we investigate formation, growth, and dissolution of plasmonic bubbles in a model system of oil nanodroplets in water. Gold nanoparticles were located at the surface of nanodroplets immobilized on a substrate. We followed temporal evolution of plasmonic nanobubbles from ∼200 nm in radius and above. Our experimental results show that there is an upper limit of the bubble size set by hosting droplet size, beyond which the nanobubbles burst. Nanobubbles grew, following the same growth exponent that was reported for a sub-millimeter bubble in contact with a bulk organic solvent. When the laser was switched off, the nanobubbles could remain for several minutes, much longer than the bubbles formed directly in water. The findings from this work may be valuable for light-driven chemical conversion in droplets or photothermal treatments involving immiscible phases.