Optical properties of fractal nanostructured composite materials are consid
ered. The fractal geometry results in localization of plasmon excitations i
n the "hot" spots, where the local field can exceed the applied field by se
veral orders of magnitude. The high local fields of the localized fractal m
odes result in dramatic enhancement of optical responses, making feasible t
he surface-enhanced nonlinear spectroscopy of single molecules and nanocrys
tals. The field enhancement becomes especially large when fractals are plac
ed inside a microcavity. A theory for the enhanced Raman and hyper-Raman su
rface-enhanced scattering in microcavity-fractal composites is developed.