A method and composition for hyperthermally diagnosing and monitoring treatment of cells with photoacoustic sound and nanoparticles. The heat (temperature) and photoacoustic sound wave production inside the target tissue is measured. The desired temperature is achieved using a laser and photoacoustic imaging technique. Hyperthermia treatment of tissue applies a heat source to kill cells without protein denaturation. The hyperthermia treatment may further comprise platelet-derived treatment. The method introduces an encapsulated dye that is released at a selected temperature in the target site to indicate that a threshold temperature has been reached to hyperthermally treat the tissue. The temperature to which the target site is treated ranges from about 39° C. to about 58° C., and may last from about 5 seconds to about 30 minutes. The composition which can be a liposome composition encapsulating the dye can be introduced to the bloodstream to flow through the target site.