Metal‐coated, nanometer‐size particles are modeled with a realistic distribution of coating thicknesses. General expressions are given for the local‐field enhancement, absorption, and nonlinear optical response. In addition, heuristic arguments are used to determine the effects of a diffuse, rather than a sharp interface. The linear and nonlinear optical properties are discussed within the context of the effective medium theory for small volume fractions. An efficient method of solution is used with the flexibility to handle an arbitrary number of coatings.