We report here a guest‐reaction‐induced mitosis‐like host transformation from a known Pd4L2 cage 1 to a conjoined Pd6L3 twin‐cage 2 featuring two separate cavities. The encapsulation of 1‐hydroxymethyl‐2‐naphthol (G1), a known ortho‐quinone methide (o‐QMs) precursor, within the hydrophobic cavity of cage 1 is found crucial to realize the cage to twin‐cage conversion. Confined G1 molecules within the nanocavity undergo self‐coupling dimerization reaction to form 2,2′‐dihydroxy‐1,1′‐dinaphthylmethane (G2) which then triggers the cage to twin‐cage mitosis. The same conversion also proceeds, in a much faster rate, via the direct templation of G2, confirming the induced‐fit transformation mechanism. The structure of the (G2)2⊂2 host–guest complex has been established by X‐ray crystallographic study, where cis‐ to trans‐ conformational switch on one bridging ligand is revealed.