This paper presents the effect of NaCl on the Krafft temperature (TK), surface adsorption and bulk micellization of cetyltrimethylammonium bromide (CTAB) in aqueous solution. The critical micelle concentration (CMC) of CTAB in the presence of NaCl increased and then decreased with increasing temperature. Thus, the CMC–temperature data can be represented by a bell‐shaped curve. The micellar dissociation (fraction of counterion binding) and energetic parameters (free energy, enthalpy and entropy changes) of both adsorption and micellization were calculated. The processes were found to be both enthalpy and entropy controlled and appeared to be more and more enthalpy driven with increasing temperature. An enthalpy–entropy compensation rule was observed for both adsorption and micelle formation. The TK of the surfactant decreased significantly in the presence of NaCl, which is a sharp contrast to the usual behavior of the effect of electrolytes on the TK of classical ionic surfactants. The surface excess concentrations decreased with increasing temperature. However, the values were much higher in the presence of NaCl compared to the corresponding values in pure water. The solubilization behavior of a water‐insoluble dye, Sudan red B (SRB), in the micellar system was studied by the UV–visible spectrophotometric technique. The molar solubilization ratio in the presence of NaCl was found to be about three times higher than that in pure water, indicating that the solubilization of SRB in the CTAB micelles significantly increases in the presence of NaCl.