We report dynamic Monte Carlo (DMC) simulation study of solution behavior of multi-arm telechelic star polymers, wherein the number of branching (f) increases with decreasing arm length (n); thus keeping the total number of monomer (N) in the molecule around a constant value. On deteriorating solvent quality, the conformational change occurs from an open to a compact globule structure. The terminal functional groups form aggregate as the solution is cooled progressively and the aggregation phenomenon drives the collapse transition. The transition temperature follows a non-monotonic trend with the functionality, in comparison with an equivalent series of star homopolymers. The non-monotonic behavior of telechelic star polymer is attributed to the interplay between enthalpic gain due to endmonomer aggregation and entropic loss due to loop formation. Structural analysis reveals that, aggregation of end group yields a structure resembles to "watermelons" (WM). Simulation results for the systems with varying N (keeping f or n constant and varying n or f) shows the similar mechanism to the constant N system. Further, we discuss results on highly branched telechelic star polymer with shorter arm length, where, we observe the formation of collapsed structures with single and double aggregates in isothermal and non-isothermal cooling respectively. (C) 2013 Elsevier Ltd. All rights reserved.