Surface plasmon resonance of gold and silver nanoparticle (NP) layers is investigated by the experiment as well as simulations. Although the good agreement was found for gold NP film, a significant mismatch in the resonance energy for silver NP film was observed. The deviation was assigned to the presence of silver oxide (Ag2O) in silver NPs. As an alternative to the NP size-dependent Drude model, the analysis based on effective medium approximation for refractive index of Ag-Ag2O material system is carried out and compared with the core-shell model. Both Mie’s model and numerical simulation results illustrate shift of the surface plasmon resonance due to silver NP surface oxidation.