Nowadays, the application of nanoparticles for biomedical purposes is a promising and innovative tool for the thermal therapy of tumors. Gold nanoparticles are distinguished by their tunable optical properties, biocompatibility, and ease of synthesis. The ability of gold nanoparticles to absorb light at near-infrared region (NIR) to generate localized heat allows temperature elevation and optimizing the temperature distribution during short-time laser ablation. The synthesized 20-nm gold nanoparticles injected on the surface of the tissue demonstrated rapid and diffused heat increase enlarging the shape of the treated region compared to the pristine tissue. Another advantage of this work is the proposed optical fiber distributed sensing network over the laser ablation assisted with nanomaterials. The sensing system uses single-mode enhanced-backscattering optical fibers doped with MgO nanoparticles; it achieves narrow spatial resolution, which demonstrates accurate temperature distribution monitoring in real time, in 2-dimensions over 5.4 cm2 area at 16 sensing points per fiber. The obtained sensing data allowed to calculate the treated area and provided the information when the ablation process should be terminated in order to avoid the vaporization of tissue after reaching the temperature of 100 °C. The calculated damage threshold (>60 °C) areas are 2.57 cm2 with gold nanoparticles, compared to 1.33 mm2 pristine. The results of this work provide the solution to two issues existing during laser ablation that are possible damage of undesired area and the ability to precisely monitor the temperature in real time that is compatible to MRI.