Diffraction Bragg gratings consisting of metal (silver) nanoparticles are generated inside a soda-lime glass substrate. After ion-exchanging and annealing processes in the glass, the silver nanoparticles are first formed with the particle diameters of 10 nm ∼ 30 nm. By interfering two CW laser beams at ∼ 60 ${mu}{ extrm}{m}$ deep under the surface of the nanoparticles-dispersed glass, Bragg gratings with thickness of 15 ${mu}{ extrm}{m}$ and period of 3.5 ${mu}{ extrm}{m}$ are generated. Diffraction efficiency of the gratings formed by two TE-polarized beams is three times higher than that by two TM-polarized beams. From this polarization dependence, we have found that strong coupling of the surface plasmons induced on the metal particles may contribute dominantly to generate the diffraction grating.