We have developed a theranostic nanocomposite of metallic nanoparticles that uses two distinct fluorescence mechanisms: Förster Resonance Energy Transfer (FRET) and Metal-Enhanced Fluorescence (MEF) controlled by ligand-receptor interaction. Supramolecular assembly of the fluorophore-labeled glycoligands to cyclodextrin-capped gold nanoparticles produces a nanocomposite with a quenched fluorescence due to FRET from the fluorophore to the proximal particle. Subsequently, interaction with a selective protein receptor leads to an aggregation of the composite, reactivating the fluorescence by MEF from the distal metallic particles to fluorophores encapsulated in the aggregates. The aggregation also causes a red-shift in absorbance of the composite, thereby enhancing the production of reactive oxygen species (ROS) on red-light irradiation. Our nanocomposite has proven suitable for targeted cancer cell imaging as well as multimode therapy using both the photodynamic and drug delivery properties of the composite.