We have investigated the micelle formation by room-temperature ionic liquid (RTIL), 1-butyl-3-methylimidazolium octyl sulfate (bmimOs) with another RTIL, ethyl ammonium nitrate (EAN). In addition, the effect of micelle formation on the solvation and rotational relaxation dynamics have been observed using steady-state and picoseconds time-resolved spectroscopy. Both the solvent and rotational relaxations of Coumarin-153 are retarded in the micelle compared to that of neat EAN. The increase in average solvation time on going from neat EAN to bmimOs-EAN micelle is very small compared to the increase in solvation time on going from pure water to water containing micelle. (c) 2010 Elsevier B. V. All rights reserved.