We perform a set of experiments on photo-heating in a water droplet containing gold nanoparticles (NPs). Using photo-calorimetric methods, we determine efficiency of light-to-heat conversion (η) which turns out to be remarkable close to 1, (0.97< η <1.03). Detailed studies reveal a complex character of heat transfer in an optically-stimulated droplet. The main mechanism of equilibration is due to convectional flow. Theoretical modeling is performed to describe thermal effects at both nano- and millimeter-scales. Theory shows that the collective photo-heating is the main mechanism. For a large concentration of NPs and small laser intensity, an averaged temperature increase (at the millimeter-scale) is significant (~ 7 °C) whereas, on the nanometer scale, the temperature increase at the surface of a single NP is small (0.02 °C). In the opposite regime, a small NP concentration and intense laser irradiation, we find an opposite pictures: a temperature increase at the millimeter-scale is small (0.1 °C) but a local, nanoscale temperature has strong local spikes at the surfaces of NPs (3 °C). These studies are crucial for the understanding of photo-thermal effects in NPs and for their potential and current applications in nano-and bio -technologies.