A cyclodextrin-peptide hybrid bearing coumarin and fluorescein on the peptide side chain has been designed and synthesized as a novel chemosensor molecule utilizing fluorescence resonance energy transfer (FRET). Inclusion of coumarin into beta-cyclodextrin protects this system against fluorescent quenching, so that FRET occurs though donor and acceptor moieties nearby. FRET is diminished upon the addition of various guest compounds, suggesting that this system is useful for detecting molecules in aqueous solution.