A one-step synthesis of octakis(3-azidopropyl)octasilsesquioxane from commercially available octakis(3-aminopropyl)octasilsesquioxane has been developed by a highly efficient diazo-transfer reaction under very mild conditions. Nonaflyl azide is shown to be a safer, cheaper and more efficient reagent for this transformation than the better known and generally used diazotransfer reagent triflyl azide. Octakis(3-azidopropyl)octasilsesquioxane is an excellent nanobulding block that can be readily octafunctionalized with a diversity of simple and highly functionalized terminal alkynes by copper(I)-catalyzed 1,3-dipolar azidealkyne cycloaddition under very mild conditions to provide new functional nanocages keeping a perfect 3-D cubic symmetry. The mildness, simplicity and efficiency of this approach have been demonstrated in the preparation of a glyco-POSS conjugate and a BODIPY-POSS cluster.