Interaction of beta-cyclodextrin (beta-CD) with a few novel electron donor acceptor dyads 1a-c and 2a-c, having aryl and flexible methylene spacer groups, has been investigated through photophysical, chiroptical, electrochemical, NMR, and microscopic techniques. Dyads la and 1 c, with p-tolyl and biphenyl spacer groups, respectively, exhibited significantly decreased fluorescence quantum yields and lifetimes in the presence of beta-CD, while negligible changes were observed for dyad 1b with an o-tolyl spacer. In contrast, spacer-length-dependent significant enhancement in fluorescence quantum yields and lifetimes was observed for dyads 2a-c, with flexible polymethylene (n = 1, 3, 11) spacer groups. Association constants of beta-CD encapsulated complexes have been determined and the contrast behavior observed in these systems is explained through an electron transfer (k(ET)) mechanism based on calculated favorable change in free energy (Delta G(ET) = -1.27 eV) and the redox species characterized through laser flash photolysis studies. Rates of k(ET) have been estimated and are found to increase ca. 2-fold in the case of dyads 1a and 1c when encapsulated in beta-CD, while significantly decreased k(ET) values were observed for the dyads 2a-c with flexible spacer (ca. 9-fold for 2c). As characterized through cyclic voltammetry, 2D NMR [correlated (COSY) and nuclear Overhauser enhancement (NOESY) spectroscopy], and laser flash photolysis studies, the beta-CD encapsulation of dyads with aliphatic spacer groups leads to the conformational unfolding of a sandwich type of structure, whereas dyads with rigid aryl spacer groups undergo unusual planarization as compared to the uncomplexed dyads, resulting in enhanced electron-transfer reaction between the donor and acceptor moieties.