Combining Au and Fe into a single nanoparticle is an attractive way to engineer a system possessing both plasmonic and magnetic properties simultaneously. However, the formation of the AuFe alloy is challenging because of the wide miscibility gap for these elements. In this study, we synthesized AuFePt ternary alloy nanoparticles as an alternative to AuFe alloy nanoparticles, where Pt is used as a mediator that facilitates alloying between Au and Fe in order to form ternary alloy nanoparticles. The relationship among composition, structure, and function is investigated and it was found that at an optimized composition (Au52Fe30Pt18), ternary alloy NPs exhibit both magnetic and plasmonic properties simultaneously. The plasmonic properties are investigated in detail using a theoretical Mie model, and we found that it is governed by the dielectric constant of the resulting materials.