Abstract: A method and apparatus for generating plasma in a fluid. The fluid (3) is placed in a bath (2) having a pair of spaced electrodes (4, 6) forming a cathode and an anode. A stream of bubbles is introduced or generated within the fluid adjacent to the cathode. A potential difference is applied across the cathode and anode such that a glow discharge is formed in the bubble region and a plasma of ionized gas molecules is formed within the bubbles. The plasma may then be used in electrolysis, gas production, effluent treatment or sterilization, mineral extraction, production of nanoparticles or material enhancement. The method can be carried out at atmospheric pressure and room temperature. The electrodes may carry means to trap the bubbles in close proximity. Partitions may be present between the electrodes.