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Surface plasmon (SP)—induced spectral hole burning (SHB) at the silver-dielectric interface is investigated theoretically. We notice a typical lamb dip at a selective frequency, which abruptly reduces the absorption spectrum of the surface plasmons polaritons (SPP). Introducing the spontaneous generated coherence (SGC) in the atomic medium, the slope of dispersion becomes normal. Additionally, slow SPP propagation is also noticed at the interface. The spectral hole burning dip is enhanced with the SGC effect and can be modified and controlled with the frequency and intensity of the driving fields. The SPP propagation length at the hole-burning region is greatly enhanced under the effect of SGC. A propagation length of the order of 600 µm is achieved for the modes, which is a remarkable result. The enhancement of plasmon hole burning under SGC will find significant applications in sensing technology, optical communication, optical tweezers and nano-photonics.